U.S. Economy Adds 57,000 Jobs in June, Well Below Forecast of 114,000

The U.S. economy added 57,000 jobs in June, the Bureau of Labor Statistics reported Thursday. The figure fell short of economist forecasts for roughly 114,000 new positions. The unemployment rate declined one-tenth of a percentage point to 4.2 percent.

May payrolls were revised downward by 43,000 jobs. Gross domestic product expanded 2.1 percent in the first quarter. The personal consumption expenditures price index rose three-tenths of a percentage point to 4.1 percent for the year ending in May, the highest reading since 2023.

The Federal Reserve left its policy rate target at 3.50 percent to 3.75 percent after convening its first meeting under Chairman Kevin Warsh. The central bank has missed its 2 percent inflation goal since early 2021. Dan North, senior economist at Allianz Trade Americas, said two of the prior three months' payroll gains had exceeded expectations.

North attributed the drop in the unemployment rate to a decline in the labor-force participation rate and said he was not concerned by the June shortfall.