U.S. unexpectedly shed 23,000 jobs in July, putting Fed rate hikes in question
- The U.S. lost 23,000 jobs in July, while June’s originally reported 57,000 job gain was revised down to just 20,000.
- Forecasts had been for 80,000 jobs to have been added in July.
- Crypto markets are showing little reaction even as stock and bond markets gain on the news.
The U.S. labor market showed weakness for the second consecutive month in July, possibly giving the Federal Reserve room to hold rates in place despite high inflation.
According to the government’s Nonfarm Payrolls Report released Friday morning, the U.S. lost 23,000 jobs last month. That was far below the consensus expectation of a gain of 80,000 jobs, and down from June’s addition of 20,000 (revised down from an originally reported 57,000).
May’s job gains were also revised sizably lower — down to 63,000 from an originally reported 129,000.
The last negative jobs print was in February, when the U.S. lost 156,000 jobs.
The unemployment rate dipped to 4.1%, compared with the expected 4.2% and June’s 4.2%.
Market reaction is swift, with U.S. stock index futures gaining and interest rates dipping. Also moving higher are precious metals, with gold now up 3% for the day and silver up just shy of 6%. There’s little action in crypto, with bitcoin remaining modestly higher on the session at $65,000.