US employers unexpectedly lost 23,000 jobs in July, according to the latest data. Additionally, job gains for the previous two months were revised down sharply by a combined 103,000 jobs, indicating a weaker labour market than previously suggested.
Despite the job losses, the unemployment rate remained unchanged at 4.1%. Economists had projected an unchanged unemployment rate and 83,000 new jobs for the month.
The July job losses were primarily concentrated in local government education, which saw a reduction of 50,000 jobs, and retail, which lost 19,000 jobs. In contrast, the private sector gained 30,000 jobs, with growth mainly in healthcare.
Hourly earnings for all employees increased by 3.2% over the past year. Next week's consumer pricing data will show whether these gains have kept pace with inflation.