NewsWSVN 7 MiamiAugust 7, 2026Miami-Dade
U.S. employers cut 23,000 jobs in July as labor market participation declines
U.S. employers unexpectedly reduced payrolls by 23,000 jobs last month, while the unemployment rate fell to 4.1% primarily because 264,000 people exited the labor force. The decline in hiring marks a significant shift in the labor market, with notable job losses in public schools, retail, and hospitality sectors.
Read the full story at WSVN 7 MiamiWhy It Matters
The shrinking labor pool and slowing job growth impact the availability of work for residents and signal potential shifts in the national economic recovery.
Key Facts
- U.S. employers cut 23,000 jobs in July.
- The unemployment rate fell to 4.1% because 264,000 people left the labor market.
- Labor Department revisions reduced previously reported payroll numbers for May and June by 103,000.
- Public schools cut 50,000 jobs in July.
- Restaurants and bars cut 26,000 jobs in July.
- Retailers cut 19,000 jobs in July.
- Construction companies added 22,000 jobs.
- Factories added 5,000 jobs.
- The labor force participation rate fell to 61.4%, the lowest since February 2021.
- Workers who changed jobs last month received a 7% pay raise, compared to 4.4% for those who stayed.
- The 'break-even' rate of monthly hiring has dropped to nearly zero due to immigration policies and baby boomer retirements.
Who's Mentioned
personMarianna Kudlyak“Researcher at Federal Reserve Bank of San Francisco”personSal Guatieri“Senior economist at BMO Capital Markets”personKush Desai“White House spokesman”personRiva Mikhlin“Researcher at Federal Reserve Bank of San Francisco”organizationFederal Reserve“Conducted study on hiring rates”organizationLabor Department“Source of employment data”organizationFactSet“Data firm that surveyed forecasters”organizationADP“Payroll processor”personIngrid Chen“Researcher at Federal Reserve Bank of San Francisco”personDonald Trump“President of the United States”