U.S. hiring slowed in June as payroll growth rose by 57,000
United States Evening Breaking National Update – June payrolls rose 57,000, unemployment held at 4.2%, and lower revisions point to a cooler labor market.
June hiring slowed
The U.S. labor market cooled in June, with nonfarm payrolls rising by 57,000 and the unemployment rate holding at 4.2%, according to the Labor Department’s monthly employment report. Health care, social assistance, and professional and business services added jobs, while leisure and hospitality lost jobs.
Why it matters
Average hourly earnings rose 0.3% in June and 3.5% over the past year. That means pay is still growing, but not fast enough to signal a fresh inflation surge. For borrowers, businesses, and investors, a softer labor report can also shape expectations for the Federal Reserve’s next move on rates.
What changed in the past two months
April payroll growth was revised down by 31,000, from 179,000 to 148,000, and May was revised down by 43,000, from 172,000 to 129,000. The labor force participation rate also fell to 61.5% in June, while the employment-population ratio slipped to 59.0%. The report points to slower momentum, not recession.
What to watch next
The next question is whether July hiring stays modest and whether inflation cools further. If job growth remains positive without a jump in layoffs, the Fed may keep debating timing rather than urgency.
Sources
- Bureau of Labor Statistics, Employment Situation news release
- U.S. Department of Labor, June employment situation PDF
- Associated Press jobs report analysis
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