The US economy lost 23,000 jobs in July, a sharp miss compared with forecasts for roughly 80,000 to 95,000 new positions. Local government education, retail and financial activities recorded notable declines, while healthcare added jobs. Wage growth slowed to 3.2% year on year, but the unemployment rate edged down to 4.1% as labour-force participation weakened. The surprise report increased expectations that the Federal Reserve could avoid raising interest rates, while the dollar fell against major currencies.