US Unemployment Falls to 4.1% as 264,000 Leave Workforce in July
Updated
Updated · USA TODAY · Aug 8
US Unemployment Falls to 4.1% as 264,000 Leave Workforce in July
3 articles · Updated · USA TODAY · Aug 8
Summary
The July jobs report showed unemployment fell to 4.1% even as the U.S. economy lost 23,000 jobs, reinforcing economists’ view that the drop reflects fewer job seekers rather than stronger hiring.
Labor force participation slid to 61.4%, down from 61.5% in June and the lowest since February 2021; excluding pandemic lows, it was the weakest reading in five decades.
A total of 264,000 people left the workforce in July after 720,000 in June, bringing the 12-month exodus to 1.318 million and broadening concern that the labor pool is shrinking across demographic groups.
Older workers helped drive the decline, with participation among people 55 and over falling to 36.9%, a 21-year low, while analysts also cited burnout, retraining, caregiving pressures and return-to-office mandates.
Economists warn a sustained workforce retreat could slow U.S. growth, especially as immigration no longer offsets the aging of the labor force as it did earlier in the post-pandemic expansion.