US employment drops 23,000 in July, defying forecasts

US employment unexpectedly fell by 23,000 jobs in July, contrary to forecasts for an 80,000 gain, signaling continued summer weakness. The Bureau of Labor Statistics revised down May and June hiring by 103,000. Declines were led by local government education, retail, warehouse clubs, and gas stations. The Federal Reserve, which has held rates steady all year, faces a September decision. Weak jobs data may reduce rate-hike pressure while inflation remains a problem.