June Jobs - Hiring Slows; Unemployment Down

Hiring slows but unemployment lower.  In June, U.S. hiring slowed sharply even as the unemployment rate fell suggesting the labor market still faces some challenges despite signs of strength in recent months.  While consumer spending has been resilient in the face of an energy price shock from the Iran war, Americans remain pessimistic about high prices and wages that aren’t keeping up with inflation, which may also leave employers cautious about hiring.  All else equal, today’s softer jobs report likely reduces pressure on Fed policymakers to raise interest rates in the short-term.

• Payrolls grow 57K in June.  The U.S. labor market added 57k jobs in June down from 129K (revised lower) in May and below expectations for 113K.  Year-to-date, employers have added about 100K jobs per month in 2026, up from just 10K per month in 2025 and compared to expectations for about 70K per month when the year began.  Employment in professional and business services continued an upward trend in June (+36K), social assistance added 25K jobs and health care added 22K jobs.  The leisure and hospitality employment declined by 61K reflecting weaker than usual seasonal hiring.
• 4.2% unemployment in June, down from 4.3%.  The U.S. unemployment rate registered 4.2% in June, down from 4.3% in April better than expectations for the same.  The labor force participation rate fell to 61.5% from 61.8% in May.