U.S. lost 23,000 jobs in July, first decline in months

WHAT HAPPENED

U.S. lost 23,000 jobs in July, when between 83,000 and 95,000 new jobs were expected. The unemployment rate fell to 4.1%, but because more people stopped looking for work.

WHY IT MATTERS

The slowdown appeared first in government, stores, and tourism; factories barely grew. Fewer jobs mean more competition for vacancies and less power to demand raises. It also increases pressure for the Fed to lower rates.

AND FOR YOUR PORTFOLIO

For your wallet, a weaker job market can cool salary increases and make it harder to find work. If rates are lowered, credit cards and mortgage loans could become cheaper, although the effect depends on each bank and loan.