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June Job Market Shows Signs of Weakness Across the U.S.

Job growth slowed in June to an increase of 57,000 after three straight months of gaining more than 100,000, according to a new report released Thursday by the U.S. Bureau of Labor Statistics. Job gains were also revised down from…

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Key points

  • Job growth slowed to 57,000 in June, a significant drop from previous months.
  • The unemployment rate decreased to 4.2%, but 720,000 people left the labor market.
  • Leisure and hospitality jobs fell by 61,000, indicating weaker seasonal hiring.

— Job growth in the United States experienced a notable slowdown in June, with an increase of only 57,000 positions added. This follows three consecutive months where job gains exceeded 100,000, according to data from the U.S. Bureau of Labor Statistics.

Furthermore, previous job gain estimates were also adjusted downward. The May figures were revised from 172,000 to 129,000, while April’s numbers changed from 179,000 to 148,000.

The national unemployment rate saw a slight decrease to 4.2%, marking the lowest level since June 2025, when it stood at 4.1%. However, this drop has raised concerns as it coincided with 720,000 individuals exiting the labor force. Elise Gould, a senior economist at the Economic Policy Institute, commented on the situation, stating that the unemployment rate’s decline was “for the wrong reasons.”

Industries that contributed positively to job growth in June included business and professional services, which added 36,000 jobs; social assistance, with an increase of 25,000 jobs; and healthcare, which saw a rise of 22,000 jobs. In contrast, the leisure and hospitality sector faced a decline, losing 61,000 jobs due to weaker seasonal hiring patterns.

Based on reporting by Tim Henderson originally published by Stateline. Read the original story.

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