US employers unexpectedly cut 23,000 jobs in July; unemployment dips to 4.1%

US employers unexpectedly cut 23,000 jobs in July, signaling a weakening labor market; unemployment fell to 4.1% as fewer people sought work, raising doubts about a Fed rate hike. May and June hiring was revised down by 103,000. Government, leisure and hospitality, and retail led declines, though private payrolls rose 30,000. Annual wage growth slowed to 3.2%, the weakest in over five years. Labor force participation dropped to 61.4%, the lowest since the 1970s excluding the pandemic. Rising costs from the Iran war and concerns over AI-related job losses add to economic uncertainty.