The US economy is creating fewer jobs than expected with the employment market performing weaker during the summer than previously thought, official figures show.
There was a surprise shedding of 23,000 jobs last month, with declines driven by cuts in local government education and retail roles, despite analysts predicting growth.
The Bureau of Labor Statistics also revised down the number of jobs added in May and June by 103,000, signalling a slow summer of job creation.
The latest figures raise questions over what the US central bank, the Federal Reserve, will decide to do with interest rates next month after keeping them on hold for all of this year.
Analysts had expected an uptick in the number of jobs being added to the economy last month of 80,000, as opposed to a loss of 23,000.
As well as falls in local government education and retail roles, there were also declines in warehouse clubs, hypermarkets, gas stations and general mechanise sellers.
However, the Bureau of Labor Statistics said the unemployment rate remained steady at 4.1%.
Payrolls do have a tendency to be softer in July, but chief investment officer of Premier Miton Neil Birrell said the US jobs market was weaker "by some distance".
"Labour force participation is back at levels not seen since the days of Covid, meaning jobs just aren't being created," he said.
"This does leave the Fed with the problem of a weak jobs market providing a read across to growth, all at a time when inflation is a problem, but this data will ease the pressure to hike rates. It's a big call in September."