US job market stalled in July as employers cut 23,000 jobs, delivering political setback to Trump

Image credit: Yanalya via Magnific. Article by Paul Wiseman and Josh Boak. AP News – August 7, 2026.

WASHINGTON (AP) — The U.S. job market stalled unexpectedly last month, delivering a political blow to President Donald Trump three months ahead of midterm elections and complicating decision-making for the inflation fighters at the Federal Reserve. Employers cut 23,000 jobs in July. And Labor Department revisions slashed 103,000 jobs from May and June payrolls. The unemployment rate fell but for the wrong reason: Thousands of people dropped out of the labor market so fewer people were competing for work. […]

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