The June jobs report shows the labor market cooling faster than expected, with payrolls rising by only 57,000 and prior months revised sharply lower, a signal that hiring momentum has weakened more than earlier data suggested.
At a Glance
- Payrolls added just 57,000 jobs in June, well below the pace seen earlier this year.
- April and May were revised down by a combined 74,000 jobs.
- Unemployment fell to 4.2 percent, but mainly because labor force participation dropped to 61.5 percent.
- Leisure and hospitality lost 61,000 jobs, dragging down the overall total.
- Wage growth held at 3.5 percent year over year, keeping inflation worries alive.
Why the Revisions Change the Story
A single soft month is easy to shrug off. Back to back downward revisions are harder to ignore. Combined with June's weak headline number, the pattern now points toward a labor market that has been losing steam for longer than earlier reports implied. Glassdoor Chief Economist Daniel Zhao put it plainly, saying the report left the labor market looking