U.S. unemployment falls to 4.1% as 1.3 million Americans leave workforce

U.S. unemployment fell to 4.1% in July, but economists say the decline is misleading because people left the workforce rather than finding jobs. Labor force participation fell to 61.4%, the lowest since February 2021 and, excluding pandemic lows, a five-decade low. Over the past year, 1.318 million Americans left the workforce, while July payrolls declined by 23,000 jobs. Experts cite burnout, ghosted job applications, caregiving costs tied to return-to-office mandates, and a 21-year-low participation rate among workers 55 and older.