Woman in glasses interviews man at office desk.

Photo by Vitaly Gariev on Unsplash

US Economy Unexpectedly Lost 23,000 Jobs in July

businessAug 10, 2026·380 words·3 min read

The United States economy unexpectedly shed 23,000 jobs in July, according to figures released on Friday by the Bureau of Labor Statistics (BLS). Economists had forecast a gain of roughly 80,000 positions, making this the second consecutive month in which hiring undershot expectations. The agency also revised its estimates for May and June down by a combined 103,000 jobs, indicating that the summer slowdown ran deeper than previously understood. Paradoxically, the unemployment rate edged down to 4.1% from 4.

Some parts of the economy lost many jobs. Local government schools lost 50,000 jobs. Hotels and restaurants lost 40,000, and shops lost 19,000. Building companies added 22,000 jobs. Health care added 22,000, but that is fewer than usual. People do not agree about the news. The White House said its plans were working, because unemployment fell and factories were busy. But Glassdoor, a jobs website, said worker confidence was at its lowest level ever.

Now everyone is watching the Federal Reserve (the Fed), the American central bank. Prices are still rising by 3.5% a year, but the job market is getting weaker. The Fed must choose between these two problems. The Fed kept interest rates between 3.5% and 3.75%. Experts now think the Fed will probably not raise rates in September. Pay rose 3.2% in a year, which is probably too slow to keep up with prices.

Read at other levels

A1Beginner92w A2Elementary140w B1Intermediate218w B2Upper-Intermediate298wPro

C1Advanced380w(current · Pro)