Key facts
- U.S. employers added 57,000 jobs in June.
- The unemployment rate decreased to 4.2% in June.
- Labor force participation fell to 61.5%, a five-year low.
- Previous months' job gains for April and May were revised downward.
- The leisure and hospitality sector lost 61,000 jobs in June.
U.S. employers added 57,000 jobs in June, a notable slowdown from the gains seen in the preceding months, according to Bureau of Labor Statistics data. The unemployment rate, however, ticked down to 4.2% from 4.3% as more individuals left the labor force.
This report indicates a cooling labor market after a spring surge, with downward revisions to April and May job totals. The labor force participation rate also declined to 61.5%, reaching a five-year low, suggesting fewer people were actively seeking employment. Economists had anticipated around 100,000 jobs added and the unemployment rate holding steady at 4.3%.
While sectors like professional and business services, social assistance, and healthcare saw employment growth, the leisure and hospitality sector experienced a significant loss of 61,000 jobs. This decline in a sector closely watched for consumer health signals, coupled with a drop in part-time workers, suggests a complex labor market picture.
Despite the slower pace of job creation, the market still shows steady demand with millions of job openings and low jobless claims. Wage growth, though present, is being partially absorbed by inflation, which rose 4.2% in May.