US Economy Sheds 23K Jobs in July, Wage Growth Slows

The US economy shed 23,000 jobs in July, marking a decline that missed analysts' forecasts by 106,000. According to the Bureau of Labor Statistics (BLS), total nonfarm payroll employment has added an average of just 34,000 jobs over the prior 12 months, with a yearly gain of 408,000. Labor economist Aaron Sojourner called this 'weak growth' compared to recent years.

The BLS also reported that private sector wage growth is decelerating, with average hourly earnings increasing by just 3.2% annually in July, down from 3.4% a month earlier. This slowing wage growth has significant implications for workers and their families, who are struggling to make ends meet due to rising prices.

Economic analyst Mark Hamrick noted that the real headline is 'the weakness in payrolls,' with companies becoming increasingly reluctant to hire. He described this as a 'low-hire, low-fire job market' where workers have fewer opportunities and less bargaining power.