US Job Market Takes a Hit as Employers Cut Jobs in July

US employers unexpectedly cut jobs in July, marking a shift from the surprising strength seen earlier this year. The Bureau of Labor Statistics reported that nonfarm payrolls decreased by 23,000 last month.

The data also showed a combined 103,000 downward revision to the May and June figures, indicating that hiring in those months was not as strong as initially thought.

Despite the job cuts, the unemployment rate fell to 4.1 percent due to a decline in the labour force participation. Wage growth also slowed down.