• The economy lost 23,000 jobs in July, far missing forecasts for 95,000 gains.
• Unemployment dipped to 4.1%, but 103,000 jobs were revised down from prior months.
• This data slashed odds of a September rate hike to 45% from 55% on Thursday.

Why it matters: The labor market is cooling faster than expected just as the Fed weighs its next move on stubborn inflation.

What happens next: All eyes turn to the **August 19...