US unemployment rate falls to 4.1% in July as manufacturing payrolls add 5,000 jobs

The labor market is cooling faster than expected, with total nonfarm payrolls actually declining and prior months revised sharply lowerThe US unemployment rate edged down to 4.1% in July from 4.2% in June, a modest improvement. The Bureau of Labor Statistics released its Employment Situation report on August 7, and total nonfarm payrolls declined by 23,000 in July. The details paint a mixed pictureManufacturing payrolls gained 5,000 jobs during the month. Revisions tell the real storyMay and June payroll figures were revised lower by a combined 103,000 jobs. The unemployment rate ticking down to 4.1% provides some cover for policymakers who want to move cautiously.