US Jobs Market Unexpectedly Contracts in July

The US economy experienced an unexpected contraction in July, losing 23,000 jobs according to the federal government's monthly jobs report.

This decline marks a significant drop from June's 57,000 job additions and brings the average monthly job growth for the first half of 2026 to 92,000.

The unemployment rate fell slightly from 4.2% in June to 4.1% in July, but remains low by historical standards.

The unexpected jobs report has raised concerns about the labor market's resilience in the face of elevated inflation and a historic oil shock driven by the Iran war, which has led to higher fuel prices and supply-chain costs.