June Jobs Report: Hiring Slows Sharply, Unemployment Ticks Down on Shrinking Labor Force

The Bureau of Labor Statistics reported nonfarm payrolls rose by just 57,000 in June, roughly half the ~115,000 consensus forecast, with April and May combined revised down by 74,000 jobs. The unemployment rate dipped to 4.2%, driven by a falling labor-force participation rate (61.5%, lowest since March 2021) rather than job growth. Leisure/hospitality lost 61,000 jobs while professional/business services (+36,000) and healthcare (+22,000) led gains; average hourly earnings rose 3.5% year-over-year.