U.S. nonfarm payrolls fell by 23,000 in July, easing Fed rate-hike pressure

U.S. July nonfarm payrolls unexpectedly fell by 23,000, far below expectations, easing Federal Reserve rate-hike pressure and lifting Wall Street on Friday. The decline was far worse than the expected 80,000 gain, driven by cuts in local-government education, retail, and financial activities; leisure and hospitality also weakened. June payrolls were revised down to 20,000, and unemployment fell to 4.1% only because participation dropped. Manufacturing and construction added jobs partly due to an AI data-center boom. Traders lowered Fed rate-hike odds for September and October; economists expect next week’s CPI to show mild inflation.