US job growth slowed more than expected in June
US Job Growth Slowed More Than Expected in June
US job growth slowed more than - The U.S. labor market experienced a notable slowdown in hiring during June, with only 57,000 new jobs created, according to data from the Bureau of Labor Statistics (BLS) released on Thursday. This figure marks a significant drop from the 129,000 jobs gained in May and falls short of the 100,000 jobs economists had anticipated. Despite the slower pace, the unemployment rate fell to 4.2%, down from 4.3% in the prior month.
Leisure and Hospitality Sector Faced Challenges
Leisure and hospitality industries lost 61,000 jobs in June, highlighting weaker seasonal hiring patterns, as noted by the BLS. This sector, often viewed as a key indicator of consumer spending, was expected to show variability due to the impact of World Cup-related events on May and June employment figures. However, the decline suggests a return to more typical hiring trends.
Healthcare and Other Sectors Showed Resilience
Healthcare and social assistance remained a bright spot, adding 46,600 jobs in June. Professional and business services also saw growth, with 36,000 new positions. Construction and manufacturing, though slower, contributed positively, gaining 11,000 and 3,000 jobs respectively. Meanwhile, information and retail trade sectors recorded losses of 9,000 and 7,500 jobs, respectively.
“Employment gains in the first half of this year averaged 92,000 per month, compared to just 10,000 per month last year, underscoring sustained economic activity and support for consumer spending,” said Kathy Bostjancic, Nationwide’s chief economist, in a statement released Thursday.
“Participation in the labor force dropped to a five-year low of 61.5% in June, following a decline from 61.8% in May,” observed Pantheon Macro economists Samuel Tombs and Oliver Allen. “This reduction was particularly pronounced among older workers, likely due to increased retirements spurred by strong stock market performance.”
Analysts attribute the overall trend to a combination of factors, including an aging workforce, the adoption of artificial intelligence, and rising oil prices linked to Middle Eastern conflicts. While June’s job growth was softer than anticipated, more industries still added positions than lost them, indicating a generally stable labor market. The story is ongoing and will be updated as more data becomes available.