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02

Government jobs led the drop

CNBC attributed the weakness to a decline of about 53,000 government jobs, alongside softness in retail, leisure and hospitality and slower healthcare growth.

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03

Unemployment fell for the wrong reason

The jobless rate edged to 4.1%, but mainly because people left the labor force. Participation slipped to 61.4%, a level not seen in over five years.

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04

Wages went nearly flat

Average hourly earnings rose about 2 cents on the month, with the 12-month increase slipping to 3.2%, according to CNBC.

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05

Prior months revised down

InvestingLive noted sizeable downward revisions to the prior two months, which deepens the picture of a cooling labor market rather than a one-off.

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06

What to watch next

Whether the next report rebounds or confirms the trend, and whether workers return to the labor force, will decide if July was noise or a turn.

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