June Jobs Report Shows Hiring Slowdown as Unemployment Falls to 4.2%

U.S. hiring slowed sharply in June, with employers adding 57,000 jobs as the unemployment rate fell to 4.2%, according to the Bureau of Labor Statistics.

The lower unemployment rate was not a simple sign of labor-market strength. The labor force shrank by 720,000 people, pushing the participation rate down to 61.5%. That means fewer people were counted as working or actively looking for work.

Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →

The report also revised April and May job gains down by a combined 74,000, adding to evidence that hiring momentum has cooled. Professional and business services, social assistance, and health care added jobs, while leisure and hospitality lost 61,000 positions.

The mixed report could affect the Federal Reserve’s next interest-rate decision. Reuters reported that traders reduced expectations for a July rate hike after the data, though many still saw a possible move later in the year.

Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →