Economy adds fewer jobs than expected in June; unemployment at 4.2%
· UPIJuly 2 (UPI) -- The Bureau of Labor Statistics reported Thursday that the U.S. economy added 57,000 jobs in June, much fewer than expected.
Economists had predicted a rise of 115,000 jobs, CNBC reported. The unemployment rate dropped slightly to 4.2% from 4.3%.
Leisure and hospitality jobs, which factored into the larger-than-expected May jobs report, fell by 61,000 with "weaker than usual seasonal hiring," Yahoo! Finance reported. Some economists speculated that the World Cup could spur hiring in the leisure and hospitality sector.
Fields that reported gains included professional and business services, social assistance and health care.
The labor force participation rate fell to 61% for June, 0.3 percentage point lower than in May and the lowest since March 2021.
A broader unemployment measure including discouraged workers and those holding part-time jobs fell by 0.2 percentage point to 7.9%, CNBC said.
The bureau also revised job numbers from April and May downward, cutting the May total by 43,000 and the April total by 31,000, with the report showing significantly slower growth in jobs.
The biggest rise in jobs for June was in the professional and business services field, which climbed by 36,000, followed by 25,000 jobs in social assistance and 22,000 jobs in health care. Government jobs climbed by 8,000.
Average hourly earnings rose 0.3% in June, 3.5% from 2025 levels.
On Wednesday, Fed Chairman Kevin Warsh said the jobs market was "steady" and emphasized the importance of lowered inflation, CNBC reported.