NewsWSVN 7 News MiamiAugust 7, 2026Miami-Dade
U.S. employers cut 23,000 jobs in July as labor market participation drops
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 reflects a cooling labor market, with significant job losses in public schools, retail, and hospitality, despite growth in construction and manufacturing.
Read the full story at WSVN 7 News MiamiWhy It Matters
The shrinking labor force and slowing job growth indicate a tightening economy that may affect household budgets and future employment opportunities for workers across the country.
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.
- Retailers cut 19,000 jobs.
- 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“Central banking system”organizationLabor Department“Federal agency reporting jobs data”organizationFactSet“Data firm”organizationADP“Payroll processor”personIngrid Chen“Researcher at Federal Reserve Bank of San Francisco”personDonald Trump“President of the United States”