U.S. July nonfarm payrolls fall 23,000, far below forecasts

U.S. nonfarm payrolls fell by 23,000 in July, far below the market forecast for an 85,000 increase, the Bureau of Labor Statistics announced. The unemployment rate came in at 4.1%, below expectations of 4.2%. The nonfarm payrolls report, released by the U.S. Labor Department, is an official gauge that tracks employment changes across the private and government sectors. Nonfarm payrolls and the unemployment rate are among the key labor indicators the Federal Reserve uses when making interest-rate decisions. Strong employment data, including higher job growth and lower unemployment, can weaken expectations for Fed rate cuts, while softer data can strengthen them.