US nonfarm payrolls fall 23,000 in July; unemployment drops to 4.1%

US nonfarm payrolls unexpectedly fell by 23,000 in July while unemployment dropped to 4.1%, offering mixed signals for Federal Reserve policy. The decline came from 53,000 lost government jobs due to seasonal factors, while private payrolls grew by 30,000. Labor force participation fell to 61.4%, the lowest in five decades apart from the pandemic. Roughly 1.4 million people have left the workforce this year. Bank of America still expects a 75-basis-point Fed rate hike starting September, citing inflation concerns; investors now await CPI data.