US labor market weakened in June
Jul 02, 2026 | 11:00 am ET
Description
Empty tables line the pier at Old Orchard Beach, Maine, where a drop in Canadian visitors has affected business. Nationally, leisure and hospitality jobs dipped 61,000 in June, reflecting slower seasonal hiring. (Photo by Kevin Hardy/Stateline)
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 172,000 to 129,000 for May, and from 179,000 to 148,000 for April.
The unemployment rate ticked down to 4.2% — the lowest since June 2025, when it was 4.1%.
The jobs increases were especially weak considering that the men’s World Cup soccer tournament likely added 40,000 jobs in June, said Elise Gould, senior economist at the left-leaning Economic Policy Institute, in a statement. Gould said the unemployment rate drop was “for the wrong reasons” as 720,000 people left the labor market.
The industries adding the most jobs in June were business and professional services (36,000 jobs), social assistance (up 25,000 jobs) and healthcare (22,000 jobs).
There was a drop of 61,000 jobs in leisure and hospitality jobs, reflecting weaker-than-usual seasonal hiring for the summer, the BLS said.
Stateline reporter Tim Henderson can be reached at [email protected].
