US Unemployment Rate Drops to 4.1% as Labor Market Loses Momentum

The US unemployment rate decreased to 4.1% in July from 4.2% in June, according to the Bureau of Labor Statistics' Employment Situation report.

This modest improvement comes despite a total nonfarm payrolls decline of 23,000 in July, following a revised gain of just 20,000 in June.

The average monthly job growth over the prior 12 months has been revised down to 34,000 per month.

Manufacturing payrolls added 5,000 jobs during the month, while health care continued to contribute positively with an additional 22,000 jobs. However, local government education shed 50,000 jobs, marking the single largest sectoral decline in the report.