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The Labor Department released June data on the US economy. Jobs grew, but the gain was smaller than expected, and unemployment fell. Health and social assistance led the gains, with hiring in that sector, while construction added workers. Leisure and hospitality shed jobs. The average wage rose modestly, and the participation rate dipped. May and April figures were revised downward.
- Jobs grew in June but not as fast as expected
- The unemployment rate fell while the labor force participation dipped
- Health care and social assistance led job gains; construction added; leisure and hospitality shed
- Wages climbed a little on the month, with steady annual growth
- May and April figures were revised downward
US jobs data: June adds 57,000; unemployment rate at 4.2%
Jobs by sector
The U.S. labor market expanded modestly in June, adding 57,000 payrolls, well below economists’ forecast of about 115,000. The unemployment rate dropped to 4.2% in June, from 4.3% in May, and came in under the 4.3% estimate.
Gains were led by the health care and social assistance sector, which added 46,600 jobs. The construction industry added 11,000 positions. In contrast, the leisure and hospitality sector shed about 61,000 jobs.
Wages and participation
Average hourly earnings rose to $37.64 in June, up 0.3% from May, aligning with expectations. On an annual basis, wages increased by 3.5% in June, within analysts’ forecasts.
The labor force participation rate slipped to 61.5% in June from 61.8% in May, leaving it below the pre-pandemic norm of 63.3%.
Conclusion
The June labor market expanded at a modest pace, adding 57,000 payrolls—well below economists’ forecast—while the unemployment rate fell to 4.2%. A softer labor force participation rate of 61.5% helped pull the unemployment rate lower even as hiring cooled. Gains were led by health care and social assistance (46,600), with construction adding 11,000; leisure and hospitality shed about 61,000 jobs. Average hourly earnings rose to $37.64, up 0.3% for the month and about 3.5% year over year. Revisions to April and May totals underscored a slower pace than previously estimated. Taken together, the report signals a still-healthy but slower labor market, characterized by modest wage growth and persistent participation challenges that will shape policy and outlook going forward.
Frequently asked questions
- What was US job growth in June? US added 57,000 jobs in June, below the forecast of 115,000.
- Why did the unemployment rate fall in June despite slower hiring? The rate dropped to 4.2% as more people left the labor force, lowering the share of unemployed.
- Which sectors added the most jobs in June? Health care and social assistance added 46.6k jobs. Construction added 11k. Leisure and hospitality shed 61k.
- How did wages change in June? The average hourly wage was $37.64, up 0.3% from May. Annual growth was 3.5%.
- Were the April and May numbers revised? Yes. May was revised from 172k to 129k. April was revised from 179k to 148k. Combined April and May were 74k below earlier tallies.