US loses 23,000 jobs in July as labor force participation slumps

The US labor market lost 23,000 jobs in July, with significant declines in government, retail, and leisure and hospitality sectors, according to the Bureau of Labor Statistics. The unemployment rate fell to 4.1%, but labor force participation dropped to 61.4%, its lowest in five years, as 264,000 people left the workforce. Economists see signs of an economic slump, and expectations grow that the Federal Reserve will hold interest rates steady in September.