US employers cut nonfarm payrolls by 23,000 in July and prior months were
sharply revised down, the BLS said on Friday. The unemployment rate fell to 4.1%
while the labor force participation rate continued to drift lower. The report
flags a potential softening in the labor market amid rising inflation and
heightened uncertainty from the Iran conflict, though still-robust consumer
demand is sustaining some hiring. The print could encourage the Fed to delay
further rate hikes as policymakers balance inflation pressures against
employment risks.
