U.S. employers unexpectedly cut 23,000 jobs amid strain from the Iran war, unemployment dips to 4.1%

Paul Wiseman, Associated Press Paul Wiseman, Associated Press WASHINGTON (AP) — U.S. employers unexpectedly cut 23,000 jobs last month, and Labor Department revisions shaved 103,000 jobs off payrolls in May and June. The unemployment rate dipped to 4.1% only because Americans left the job market. The June jobs numbers from the Labor Department Friday marked a sharp reversal for the American labor market and a political setback for President Donald Trump less than three months before his Republican party seeks to keep full control of Congress in the midterm election. Please check your inbox to confirm. Forecasters had expected job creation to approach 100,000 last month.

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Scoop News DeskU.S · Published Friday, August 7, 2026 at 1:29 PM UTCUpdated Friday, August 7, 2026 at 1:39 PM UTC

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The jobless rate tumbled to 4.2% in June, the lowest in a year, and is expected to have stayed there last month, according to a survey of forecasters by the data firm FactSet.