US employers unexpectedly cut 23,000 jobs amid strain from the Iran war, unemployment dips to 4.1%

The 4.1% unemployment rate was the lowest since June 2025 – but it dropped for the wrong reasons: Fewer people were competing for work as 264,000 dropped out of the labor market. The share of those working or looking for work fell to 61.4%, the lowest since February 2021.