U.S. employers added 57,000 jobs in June, below forecasts

U.S. employers added 57,000 jobs in June, well below the 110,000 economists had forecast. The unemployment rate fell to 4.2 percent from 4.3 percent in May, even as 720,000 people left the labor force.

Revisions and industry detail The Bureau of Labor Statistics lowered May employment by 43,000 to 129,000 and April by 31,000 to 148,000. Private employers added 98,000 positions, according to ADP data, while average hourly earnings rose 4.4 percent over the year.

Healthcare added 22,000 jobs, below its recent monthly average of 38,000. Hospitality and leisure lost 61,000 positions, a sharper decline than usual seasonal patterns.

Labor market context The three-month average of job gains stands at 111,000, still above the slower pace recorded last fall and winter. Job openings, hires and voluntary separations changed little in May, keeping the market in what officials described as a low-hire, low-fire mode.

ADP chief economist Dr Nela Richardson said the hiring pace reflects both supply and demand factors, with some industries facing labor supply constraints. >"The pace of hiring is telling a story of both supply and demand. " — Dr Nela Richardson, ADP chief economist Inflation has risen since February amid higher energy prices linked to the Middle East conflict, reaching 4.2 percent in May.

Officials at the central bank have held interest rates steady since December while monitoring price stability.