US nonfarm payrolls fall 23,000 in July; Fed rate hike odds drop

US nonfarm payrolls fell by 23,000 in July, the first monthly decline in years, missing forecasts and raising concerns about labor-market weakening while inflation remains above target. The Bureau of Labor Statistics also revised May and June down by a combined 103,000 jobs. Unemployment dipped to 4.1% from 4.2%, as labor-force participation fell to 61.4%, its lowest in over five years. Losses were broad, including retail and financial activities, while health care added 22,000 jobs. Markets lowered September Fed-hike odds to 44%, and stocks rose on hopes policy will stay unchanged.