The labor market revealed a surprising loss of jobs in July – a disappointing report ahead of the November midterms that could further complicate the Fed’s view of interest rates.
US employers lost 23,000 jobs in July – far below estimates that the economy would add more than 80,000 jobs, the Bureau of Labor Statistics said Friday.
The unemployment rate, however, ticked down to 4.1% from 4.2% the previous month.
June’s already slow jobs report was also revised downward, along with May – a combined 103,000 lower than previously reported.
But stock futures rose after the report as traders hoped the weaker-than-expected job market would keep the Fed from hiking interest rates anytime soon.
“Friday’s jobs report was not just much weaker-than-expected, it showed that the economy shed jobs during July, which puts the Federal Reserve in a conundrum, since inflation is still elevated and sticky,” Brent Wilsey, chief investment officer at Wilsey Asset Management, said in a note Friday.
“While one weak jobs report is not likely to dictate Federal Reserve policy, we think the central bank will maintain its wait and see approach on interest rates, and allow more time to pass to examine incoming economic data.”
This is a developing story. Please check back for updates.