US Job Growth Slows as Unemployment Holds at 4.2 Percent

US Job Growth Slows as Unemployment Holds at 4.2 Percent

July 3, 2026
By Mintesinot Nigussie

The United States labour market expanded at a slower pace in June, with employers adding 57,000 nonfarm jobs while the unemployment rate remained unchanged at 4.2 percent, according to data released by the U.S. Bureau of Labor Statistics.

The latest payroll increase was broadly in line with the average monthly gain of 36,000 recorded over the previous 12 months, although hiring varied across industries. Professional and business services led employment growth with 36,000 new jobs, followed by social assistance with 25,000 and health care with 22,000.

The health care sector continued to expand, though at a slower pace than its average monthly increase over the past year, while hospitals accounted for 9,000 of the new positions. Social assistance hiring was driven mainly by individual and family services.

Leisure and hospitality was the weakest performing sector, losing 61,000 jobs in June as seasonal hiring fell short of typical levels. Employment was little changed across most other major industries, including manufacturing, construction, retail trade, transportation and warehousing, financial activities and government.

The number of unemployed people remained largely unchanged at 7.1 million. Unemployment rates across major demographic groups, including adult men, adult women, teenagers and workers identified as White, Black, Asian and Hispanic, showed little movement during the month.

The labour force participation rate declined by 0.3 percentage point to 61.5 percent, while the employment-population ratio edged down to 59.0 percent. The number of people working part time for economic reasons was little changed at 4.7 million.

Average hourly earnings for private sector employees increased by 13 US cents, or 0.3 percent, to 37.64 US dollars in June, leaving annual wage growth at 3.5 percent. The average workweek remained unchanged at 34.3 hours.

The Bureau of Labor Statistics also revised employment estimates for the previous two months lower. April payroll growth was revised down by 31,000 to 148,000, while May's figure was reduced by 43,000 to 129,000, lowering combined employment gains for the two months by 74,000.

Source: FSX Business News