US hiring slows sharply in June as hospitality sheds jobs
The US economy added 57,000 nonfarm jobs in June, a marked slowdown from earlier in the year, according to the Labor Department. The unemployment rate ticked down to 4.2% from 4.3%, but that reflected a shrinking labor force rather than stronger hiring: participation fell 0.3 points to 61.5%, the lowest since March 2021, a sign that some job seekers are stepping back.
Prior months were revised sharply lower. May was cut to 129,000 from 172,000 and April was trimmed by 31,000 to 148,000, deepening the picture of a cooling market. The declines were broad, with mining, construction, manufacturing, retail, transportation and finance all roughly flat. Gains were concentrated in professional and business services (36,000), social assistance (25,000) and health care (22,000).
The weakest spot was leisure and hospitality, which shed 61,000 jobs even as the FIFA World Cup played across US host cities. Goldman Sachs had projected the tournament would add about 40,000 hospitality jobs in June; the expected tourism boost did not show up in payrolls.
A softer labor market strengthens the case for the Federal Reserve to lean toward rate cuts rather than hikes. Gold rose about 2% after the release, consistent with markets pricing in easier policy ahead.