The U.S. economy unexpectedly lost jobs in July, demonstrating a wobbly labor market as shoppers continued to withstand a surge of inflation set off by the Iran war. The U.S. lost 23,000 jobs in July, according to the federal government's monthly jobs report, which marked a decline from 57,000 jobs added in June. The U.S. added an average of 92,000 jobs per month over the first half of 2026, U.S. Bureau of Labor Statistics data showed. That pace marks an improvement from an average of about 7,000 jobs lost per month over the second half of 2025. The combination of elevated inflation and a resilient labor market has raised the chances of an interest rate hike, futures markets show.