US Economy Loses 23K Jobs in July Amid Decelerating Growth

American employers shed 23,000 jobs in July, falling short of median forecast by 106,000 jobs. According to the Bureau of Labor Statistics, job growth and private sector wage growth are 'decelerating.'

Labor economist Aaron Sojourner noted that both job growth and wage growth have slowed down. He said that employers are not engaging in broad layoffs but are increasingly reluctant to hire, leading to a low-hire, low-fire job market.

Sojourner also pointed out that the economy has added only 320,000 jobs over the last 12 months to July, which is 'weak' growth compared to recent years. It's the slowest pace of growth in at least a decade, with the exception of the pandemic year of 2020.

The BLS reported that total nonfarm payroll employment has gained an average of 34,000 jobs over the prior 12 months, or 408,000 over the course of the year. Average hourly earnings increased by 3.2% annually in July, trailing the most recently reported annual rate of inflation (3.5%) and down from wage growth of 3.4% a month earlier.