U.S. economy adds 57,000 jobs in June as hiring slows

The United States economy added 57,000 jobs in June, according to the Labor Department's monthly employment report released Thursday. The figure marked a slowdown after several months of stronger gains, and the department revised May downward by 43,000 jobs to 129,000 and April downward by 31,000 jobs to 148,000.

Job growth was concentrated in a few sectors. Professional and business services added 36,000 positions, healthcare added 22,000, and social assistance added 25,000. Mining, oil and gas extraction, construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, and financial activities showed no net change.

Hospitality losses and labor market signals Leisure and hospitality employment fell by 61,000 jobs, offsetting an expected summer increase tied to World Cup tourism. Goldman Sachs had projected the tournament would add 40,000 jobs in June. The unemployment rate edged down 0.1 percentage point to 4.2 percent, while the broader U-6 rate, which includes discouraged and underemployed workers, declined from 8.1 percent to 7.9 percent.

Labor force participation dropped 0.3 percentage points to 61.5 percent, the lowest reading since March 2021. Separate reports showed private payrolls rose by 98,000 and job turnover remained unchanged, indicating workers are staying in current roles.

"The pace of hiring is telling a story of both supply and demand," said the chief economist at a major payroll processor. Consumer surveys released the same week showed a 22.5 percent increase in the share of respondents who view jobs as hard to get.

U.S. stock indexes rose after the report, with the Nasdaq and S&P 500 each gaining 0.6 percent and the Dow rising 0.8 percent. Gold prices increased 2 percent as investors assessed the data's implications for near-term interest rate policy.