FX.co ★ US Jobless Rate Falls to 4.1% in July

The US unemployment rate edged down to 4.1% in July 2026 from 4.2% in June, coming in below expectations as many individuals exited the labor force. The number of unemployed persons declined by 178,000 to 6.916 million, while total employment slipped by 87,000 to 162.177 million. The labor force shrank by 264,000 to 169.094 million, pushing the labor force participation rate down to 61.4%, its lowest level since early 2021. The employment-population ratio also eased to 58.9%, the weakest reading since September 2021. Meanwhile, the broader U-6 measure of unemployment, which includes discouraged and underemployed workers, held steady at 7.9%.