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U.S. employers added just 57,000 jobs in June, marking one of the weakest months of hiring this year and fueling concerns that the labor market is losing momentum as wage growth continues to lag behind inflation.
The latest employment report released Thursday by the U.S. Bureau of Labor Statistics showed the unemployment rate edged down to 4.2% from 4.3%, but hiring slowed sharply from previous months. June’s total represents the weakest monthly job gain since February, when the economy posted a net loss of jobs.
Average hourly earnings rose 3.5% over the past year, remaining below the latest 4.2% inflation rate for a third consecutive month, meaning many workers continue to lose purchasing power despite wage increases.
The report also revised previous employment figures significantly lower. April payroll growth was reduced by 31,000 jobs, while May’s total was revised downward by another 43,000 jobs.
The Bureau of Labor Statistics said such revisions are routine and occur as additional employment data is received from businesses and government agencies after initial estimates are published.
With the revisions included, average monthly job growth over the past year now stands at just 36,000 positions, reflecting a substantially slower pace of hiring than in previous years.
Health care remained the largest contributor to employment gains but also showed signs of slowing. The sector added 22,000 jobs in June, well below its average monthly gain of 38,000 over the past year.
Health care accounted for nearly all net job growth during much of 2025 and has continued to be one of the strongest-performing sectors this year, making its slowdown another closely watched indicator.
Meanwhile, the leisure and hospitality industry shed 61,000 jobs during the month, a decline economists often view as an early signal of weakening consumer spending because it reflects demand for hotels, restaurants and travel.
The BLS also reported little or no employment change across several major industries, including construction, manufacturing, retail trade, transportation, financial activities, oil and gas extraction and government.
The report was released Thursday instead of its customary Friday schedule because U.S. financial markets will be closed Friday in observance of the Independence Day holiday.
Despite the disappointing headline number, some economists said the broader labor market remains relatively stable.
“The June jobs report wasn’t quite as peppy as the prior three reports, but it still points to overall general health in the labor market,” said Michael Feroli, chief U.S. economist at JPMorgan Chase.
Feroli noted that before the downward revisions, hiring during the March-May period appeared unusually strong compared with other labor market indicators. Even after the revisions, he said recent employment growth remains “decent.”
Economists had also speculated that the FIFA World Cup, being hosted at 11 U.S. stadiums through mid-July, might temporarily boost hiring in hospitality and tourism. Feroli said the June report showed little evidence of such an effect.
“There continues to be no obvious sign of a World Cup jobs boost,” he wrote.
The June report comes after several months in which the labor market appeared to stabilize following net job losses late last year. However, economists warned that slower hiring could become more pronounced as the year progresses.
Citigroup economists said the current low-hiring environment likely signals “further weakening in job growth and rising unemployment later in the year.”
Jennifer Timmerman, senior investment strategy analyst at Wells Fargo, similarly described the latest data as evidence of stabilization rather than renewed strength.
“Overall, we view the broad mosaic of jobs data as consistent with labor-market stabilization from weakness in late 2025, rather than renewed strength,” Timmerman said.
The June employment report adds to growing uncertainty over the direction of the U.S. economy as policymakers continue balancing slowing labor market conditions against persistent inflation and elevated borrowing costs.
