US Labor Market Contracts in July as Gold Prices Surge

The US labor market contracted in July for the first time in years, sparking concerns that hiring momentum is weakening. The Bureau of Labor Statistics reported a seasonally adjusted decline of 23,000 nonfarm payrolls in July, after a downwardly revised fall of 20,000 jobs in June.

Economists had expected payrolls to increase by around 83,000 jobs during the month, but the report also included significant downward revisions to prior months. Payroll gains for May and June were revised lower by a combined 103,000 jobs.

Despite weaker hiring, the unemployment rate edged down to 4.1% from 4.2%, largely due to a decline in labor force participation to its lowest level in over five years.