US Economy Lost 23,000 Jobs in July

The job losses were concentrated in a few sectors. Local government education lost 50,000 positions, partly because of how summer school holidays are measured. Leisure and hospitality lost 40,000 jobs, retail 19,000, and financial services 14,000. Construction added 22,000 jobs and health care 22,000, well below its recent monthly average of 36,000. People disagree about what the numbers mean. The White House pointed to the lower unemployment rate and factory hiring, saying its tax cuts and lighter regulation were working. Daniel Zhao, chief economist at the jobs website Glassdoor, was far more negative: his company's measure of worker confidence had hit a record low.

Attention now moves to the Federal Reserve (the Fed), the American central bank, which must balance a weakening job market against inflation of 3.5% a year. Last month it kept interest rates between 3.5% and 3.75%. The new chair, Kevin Warsh, says he is determined to bring prices down, but has given little hint about his next move. Analysts said the weak figures made a September rate rise less likely, and share prices rose. Wages grew only 3.2% over the year, slower than expected and probably not enough to keep up with prices now that gasoline costs more than $4 a gallon.