US Economy Loses Jobs in Unexpected Downturn

The US economy lost 23,000 jobs in July, a surprise downturn from the previous month's gain of 57,000 jobs.

This is despite a strong labor market that has added an average of 92,000 jobs per month over the first half of 2026, according to the Bureau of Labor Statistics.

The unemployment rate did fall slightly from 4.2% in June to 4.1% in July, but this is still considered low by historical standards.

The Iran war has driven up fuel prices and inflation, which some economists believe may lead to an interest rate hike next month. The Federal Reserve's policymaking board was divided on the issue last week, with three members voting for a rate hike.