Global Economy
U.S. June Job Growth Misses Forecasts, Unemployment Drops to 4.2%
U.S. Labor Department data released on Thursday showed that June added only 57,000 non‑farm jobs, far short of the 110,000 median estimate of economists. Despite the weak hiring pace, the unemployment rate slipped to 4.2%—a sign that the labor market is still tight. Analysts say the recent geopolitical calm and the absence of large layoffs may keep employment growth steady for the rest of 2026. The slowdown follows a downward revision of April’s job gains and comes amid mixed signals from small‑business hiring surveys, which remain more cautious than the headline figures suggest.
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The U.S. Labor Department reported on Thursday that only 57,000 non‑farm jobs were added in June, far below the 110,000 median forecast from Reuters polls.
April’s employment figures were also revised downward to 129,000 from an initial 172,000, tightening the range of monthly job gains that analysts had been expecting—anywhere from 25,000 to 200,000.
Despite the slowdown, the unemployment rate fell to 4.2% in June, down from 4.3% in May, indicating that the labor market remains tight. Low lay‑off rates continue to support headline job figures, even as small‑business hiring surveys paint a more cautious picture.
A Conference Board survey released Tuesday showed that the share of consumers who consider jobs “hard to get” hit its highest level in five‑and‑a‑half years.
Businesses are still reluctant to cut staff after the post‑pandemic talent shortage, although recent geopolitical developments—most notably the cease‑fire between the United States and Iran that helped bring oil prices back to pre‑conflict levels—have eased some of the downside risk to the labor market.
Economists now expect the recent modest strengthening in employment growth to continue through the rest of the year, barring any new shocks.