Washington: The US economy unexpectedly lost 23,000 jobs in July, while the unemployment rate fell to 4.1%, compared with 4.2% in June.

The US Department of Labor's Bureau of Labor Statistics said in its monthly report that nonfarm payrolls declined by 23,000 in July, compared with an increase of 20,000 jobs in June, falling short of the Dow Jones forecast for a gain of 83,000 jobs.

The unemployment rate fell to 4.1%, while the labour-force participation rate declined to 61.4%, its lowest level in more than five years.