The US economy unexpectedly lost jobs in July, while the unemployment rate edged lower, according to data released Friday by the US Bureau of Labor Statistics, pointing to a slowdown in the labor market.

Nonfarm payrolls fell by a seasonally adjusted 23,000 during the month, following a downwardly revised decline of 20,000 jobs in June. The Dow Jones consensus had expected the economy to add 83,000 jobs in July.

Meanwhile, the unemployment rate declined to 4.1%, while the labor force participation rate fell again to 61.4%, its lowest level in more than five years.