The U.S. economy unexpectedly lost 23,000 jobs in July, while the unemployment rate fell to 4.1% from 4.2%. The Labor Department's report, released by the Bureau of Labor Statistics, surprised analysts, who had forecast a gain of 80,000 jobs, according to Bloomberg. Deadline reported that some estimates had predicted an increase of as much as 100,000.
The job losses were concentrated in local government education and retail trade, the figures showed. Hiring in the previous two months was also revised lower than originally reported, according to Bloomberg.
Despite the overall decline, the entertainment industry saw an uptick in jobs, with gains in the movies sector, Deadline reported.
The mixed report points to a cooling labor market, even as the unemployment rate improved slightly. The data will likely factor into the Federal Reserve's next decision on interest rates.