U.S. employers added 57,000 jobs in June, far below analysts’ forecasts and signaling that hiring may be losing momentum.
Economists polled by FactSet had predicted the economy would add 100,000 jobs last month.
The unemployment rate was 4.2% in June, down from 4.3% in May.
June’s payroll report marked a slowdown after a string of strong reports from February through May, each of which topped 100,000 jobs. On Thursday, the Labor Department revised down job growth for April and May by a combined 74,000, indicating hiring was weaker than previously reported.
The professional and business services industry saw the largest gains in June, adding 36,000 jobs.
Healthcare also continued to add workers, albeit at a slower pace than in prior months. The sector added 22,000 jobs in June, below the average monthly gain of 38,000 over the prior 12 months, the Labor Department said.
Leisure and hospitality shed 61,000 jobs, surprising some economists who had expected hiring in the sector to strengthen because of the World Cup.
Despite the weaker-than-expected hiring, the labor market remains resilient, said Jerry Tempelman, vice president of economic and fixed income research at Mutual of America Capital Management.
“Geopolitical and inflationary headwinds have had only a minimal effect on slowing or preventing hiring to this point, and payroll growth has already surpassed last year’s pace,” he said in an email.
Still, economists said the report could hint at underlying issues in the labor market. The hiring rate has remained depressed in recent months, weighing on consumers’ confidence about finding a new job.
