US economy unexpectedly shed jobs in July

This story about the July 2026 jobs report will be updated with further details.

The U.S. economy unexpectedly shed jobs in July amid headwinds caused by elevated inflation and uncertainty over the Iran war's economic impact.

The Bureau of Labor Statistics on Thursday reported that employers cut 23,000 jobs in June. That figure was well below the estimate of economists polled by LSEG, who estimated 80,000 jobs would be added.

The unemployment rate dipped to 4.1%, which was also below the estimate of 4.3%.