US labor force participation dropped to 61.4% in July as payrolls shrank by 23,000 jobs, missing expectations and raising recession concerns.

US nonfarm payrolls fell 23,000 in July 2026, missing forecasts by 103,000 jobs and sending Fed rate hike expectations lower ahead of September.

US labor force participation fell to 61.4% in July 2026, its lowest since early 2021, as prime-age worker declines and demographic aging reshape

US labor force participation dropped to 61.4% in July as payrolls shrank by 23,000 jobs, missing expectations and raising recession concerns.