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U.S. Job Growth Slows Sharply In June

Despite the slowdown, the unemployment rate edged down to 4.2%, reflecting continued resilience in the broader labor market even as hiring softened.

,   and  TIPP Staff
2 min read
Employers added 57,000 jobs in June, far below forecasts as hiring slowed. Pic via(@CBSSacramento)

The U.S. labor market lost momentum in June as employers added just 57,000 jobs, well below economists' expectations and marking one of the weakest monthly employment gains in recent months.

Despite the slowdown, the unemployment rate edged down to 4.2%, reflecting continued resilience in the broader labor market even as hiring softened.

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The Labor Department also revised April and May payroll figures downward by a combined 74,000 jobs, reinforcing signs that employment growth has cooled since the spring.

The leisure and hospitality sector recorded the largest decline, shedding 61,000 positions during the month, while healthcare remained a bright spot by adding nearly 47,000 jobs.

Average wage growth reached 3.5% over the past year but continued to lag inflation, limiting gains in workers' purchasing power.

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Analysts said the weaker-than-expected report could influence the Federal Reserve's interest rate outlook, with some predicting policymakers may keep borrowing costs unchanged while assessing the economy's direction.

Economists also pointed to a growing mismatch in the labor market, with employers increasingly seeking experienced workers while many job seekers continue to compete for entry-level positions, contributing to slower overall hiring.

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tippinsightsTIPP Staff

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