US NFP Drops by 23K; Labor Market Shows Sharp Weakening
The US economy unexpectedly lost 23,000 jobs in July 2026. This figure fell far short of market expectations, which had anticipated the addition of 80,000 jobs, signaling a sharper weakening in the US labor market.
Data from the previous month was also revised downward. Job growth in June was only 20,000—lower than initially reported—while combined revisions for May and June showed a total job count 103,000 lower than previously stated.
The most significant decline occurred in the local government education sector, which lost 50,000 jobs. The retail trade sector also shed 19,000 jobs; specifically, warehouse clubs, supercenters, and other general merchandise stores lost 21,000 jobs, while gasoline stations and fuel dealers saw a drop of 5,000 jobs.
The financial activities sector also recorded a loss of 14,000 jobs. Meanwhile, other sectors—such as mining, construction, wholesale trade, transportation, information, professional services, social assistance, leisure and hospitality, and other services—showed only minor changes. On a positive note, the healthcare sector added 22,000 jobs.
Regarding market impact, the negative NFP figure and sharp downward revisions could weigh on the US dollar, as the market may perceive the US economy as losing momentum. This situation could dampen expectations for Federal Reserve interest rate hikes and create room for gold prices to rise. However, if wage data remains high or inflation stays hot, the market will likely remain cautious, as the Fed may not necessarily shift its policy direction immediately. (asd)*
Source: Newsmaker.id
