U.S. June Jobs Report Misses Expectations, Unemployment Falls to 4.2%
The U.S. added only 57,000 nonfarm jobs in June 2026, far below the 110,000–125,000 forecast. The unemployment rate unexpectedly fell to 4.2%, but largely due to a drop in labor force participation to 61.5%. Revisions cut 74,000 jobs from prior months. Leisure and hospitality lost 61,000 jobs, while professional services and healthcare added. Markets rose on expectations the Federal Reserve will hold rates steady amid cooling labor demand and persistent inflation.
Editorial summary awaiting refresh
Cross-source coverage
Wire timeline
June Jobs Report Falls Far Short of Expectations, Raising Economic Concerns
The US economy added only 57,000 jobs in June 2026, less than half the 115,000 forecast by economists, according to the Bureau of Labor Statistics. The unemployment rate ticked down to 4.2% from 4.3%, but for the wrong reason: the labor force participation rate dropped 0.3 percentage points to 61.5%, meaning fewer people were searching for work. The employment-population ratio also fell to 59.0%. Revisions cut 74,000 previously reported jobs from April and May. Leisure and hospitality was the biggest loser, shedding 61,000 jobs due to weaker seasonal hiring. Professional services, social assistance, and healthcare added jobs. Markets surprisingly rose on the news, as a cooling labor market reduces pressure on the Federal Reserve to raise rates. New Fed Chair Kevin Warsh, who succeeded Jerome Powell in May, has leaned hawkish amid inflation at a three-year high, with the FOMC voting unanimously to hold rates at 3.50%-3.75%.
Yahoo FinanceU.S. Jobs Increase by 57,000 in June, Missing Estimate for 110,000
The U.S. labor market cooled significantly in June, with employers adding only 57,000 jobs, well below the 110,000 economists had expected and sharply decelerating from May's revised reading of 129,000. The unemployment rate edged down to 4.2%, but this was partly due to a 0.3 percentage point drop in labor force participation to 61.5%. Average hourly earnings rose 0.3% month-over-month and 3.5% year-over-year, matching expectations. April and May payrolls were revised down by a combined 74,000 jobs. The weak report was seen as positive for markets, reducing the probability of a Fed rate hike at the July 29 meeting to about 22%. Professional and business services added 36,000 jobs, while leisure and hospitality shed 61,000. Market reaction was risk-on, with S&P 500 futures rising 0.39%, the 2-year Treasury yield falling to 4.121%, and gold surging 1.5% to around $4,124 an ounce.
Yahoo FinanceU.S. job creation cools in June with payrolls growth of just 57,000; unemployment rate at 4.2%
The U.S. economy added only 57,000 nonfarm payroll jobs in June 2026, far below the 115,000 consensus forecast and a sharp slowdown from May's downwardly revised 129,000. The unemployment rate unexpectedly fell to 4.2%, but the drop was largely driven by a 0.3 percentage point decline in the labor force participation rate to 61.5%, the lowest since March 2021. Household employment plummeted by 507,000. Revisions also showed prior months were weaker: May was cut by 43,000 and April by 31,000. Professional and business services added 36,000 jobs, social assistance 25,000, and healthcare 22,000. However, leisure and hospitality lost 61,000 jobs due to slower seasonal hiring, dashing expectations of a World Cup boost. Average hourly earnings rose 0.3% monthly and 3.5% annually, in line with forecasts. Markets reacted positively as traders eased expectations for a September rate hike. The report challenges the narrative of renewed labor market strength, reinforcing the view the Federal Reserve is under little pressure to tighten policy.
US Top News and AnalysisUS employers added just 57,000 new jobs in June, lower than expected
US job growth slowed sharply in June, with employers adding only 57,000 new jobs—about half of what economists had predicted. The Bureau of Labor Statistics also revised May figures down from 172,000 to 129,000 and April from 179,000 to 148,000. The unemployment rate edged down to 4.2%, but 720,000 people left the labor force. Private employers added 98,000 jobs, with pay rising 4.4% year-over-year. Healthcare added 22,000 jobs, while hospitality and leisure unexpectedly declined by 61,000 despite World Cup matches. The data suggests a 'low hire, low fire' economy. The Federal Reserve is expected to maintain its focus on inflation at its July meeting, as inflation reached a three-year high of 4.2% in May due to the Middle East war. Fed Chair Kevin Warsh indicated inflation risks have come down, but most Fed members expect at least one rate hike before year-end.
Yahoo FinanceU.S. June Payrolls Rise 57,000, Below Expectations; Unemployment Rate Falls to 4.2%
The Bureau of Labor Statistics reported that the U.S. added 57,000 nonfarm jobs in June 2026, significantly below the forecast of 125,000 and the consensus estimate of 110,000. Strength was seen in professional and business services, social assistance, and healthcare, while leisure and hospitality declined. The three-month average payroll gain fell to 111,000 from 188,000. Revisions to April and May reduced prior counts by a combined 74,000 jobs. The unemployment rate ticked lower to 4.2%, beating expectations. Average hourly earnings rose $0.13 month-over-month, up 3.5% year-over-year. The average workweek held steady at 34.3 hours. In response, stock futures rose and the yield on the 10-year Treasury dropped four basis points to 4.47%.
Yahoo Finance