The US labor market deteriorated further in July, with the economy shedding 23,000 non-farm jobs, according to data released by the Bureau of Labor Statistics (BLS).
The figure represents a significant miss against the consensus forecast of 80,000 new positions, marking a sharp acceleration in the slowdown of hiring activity.
Wall Street equities responded positively to the weak labor data, with major indices posting gains in early trading.
Investors interpreted the disappointing jobs report as a signal that the Federal Reserve may need to act more aggressively to support the economy, increasing expectations for near-term monetary easing.
The market reaction mirrors the rally seen following the softer-than-expected June jobs report, which also triggered broad-based gains in US stocks.
The consecutive months of weak employment data underscore growing concerns about the resilience of the US labor market.