June 2026 Jobs Report: NFP +57K, Sharp Slowdown From May; Unemployment Falls to 4.2% on Lower Participation

The June 2026 jobs report showed nonfarm payrolls up just 57,000, well below the roughly 113,000-115,000 consensus and a sharp slowdown from May's downwardly-revised +129,000. April and May were revised down a combined 74,000. The unemployment rate fell to 4.2% (vs. 4.3% expected), but largely because the labor-force participation rate dropped to 61.5% — the lowest since March 2021 — rather than from underlying strength. Average hourly earnings rose 0.3% to $37.64, up 3.5% YoY. Despite the weak headline, stocks edged higher into the July 4 holiday weekend, with the Dow closing at a fresh record.