The U.S. economy added 57,000 jobs in June, significantly below the 115,000 jobs economists had expected, signaling that the labor market continues to lose momentum, The Washington Post reports.
The Labor Department also revised April and May payroll figures downward by a combined 74,000 jobs, indicating that hiring has been weaker than previously reported.
Although the unemployment rate edged down to 4.2%, the decline was partly driven by 720,000 people leaving the labor force rather than stronger job creation. Economists described the current environment as a “low-momentum” labor market, with limited hiring gains across most industries.
Employment trends varied across sectors. Professional and business services added 36,000 jobs, showing signs of recovery after a weak 2025, while healthcare and social assistance continued to expand due to sustained demand from an aging population.
In contrast, leisure and hospitality lost 61,000 jobs, primarily in restaurants and bars, reflecting weaker-than-expected seasonal hiring despite the start of the summer travel season and World Cup-related activity.
Average hourly earnings increased 3.5% year over year to $37.64, but wage growth has fallen behind inflation, reducing workers’ purchasing power and weighing on consumer spending. The labor market also remains uneven across demographic groups, with higher unemployment among African Americans and particularly difficult job prospects for workers under 25.
A historically low rate of employees voluntarily leaving their jobs has reduced opportunities for new entrants, making it harder for younger workers to find employment. While layoffs remain relatively limited, ongoing uncertainty surrounding tariffs, immigration restrictions, artificial intelligence and broader economic conditions continues to encourage employers to adopt a cautious approach to hiring.
The Washington Post has the full story.
