Job Growth Slows in June; Unemployment Rate Drops to 4.2%

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)

In June, job growth in the U.S. decelerated significantly, adding only 57,000 jobs following three months of increases exceeding 100,000, as per the latest U.S. Bureau of Labor Statistics report. The report also revised job gains for May down to 129,000 from 172,000, and April’s figures were adjusted from 179,000 to 148,000. The unemployment rate dropped slightly to 4.2%, marking the lowest since June 2025, when it was 4.1%.

Elise Gould, a senior economist at the Economic Policy Institute, noted that the job growth was lackluster, especially given the potential 40,000 jobs added due to the men’s World Cup. Gould pointed out that the unemployment rate decrease was misleading as 720,000 individuals exited the labor force. In June, business and professional services led job creation with 36,000 new positions, followed by social assistance with 25,000 and healthcare with 22,000 jobs added.

Conversely, the leisure and hospitality sector experienced a significant decline, shedding 61,000 jobs, indicative of a weaker-than-usual seasonal hiring trend for summer, according to the BLS.

This report was initially published by Stateline, a segment of the States Newsroom, a nonprofit news network supported by donors and grants as a 501c(3) public charity.

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