U.S. employers pulled back on hiring last month and added only 57,000 jobs, less than half the previous month's total and a sign companies still have a cautious economic outlook. The Labor Department said Thursday that the unemployment rate declined to a low 4.2% from 4.3% in May, though the decline mostly occurred because many people out of work gave up looking and were no longer counted as unemployed. The figures suggest companies remain wary of the economy's health, with inflation at a three-year high and consumer confidence near post-pandemic lows. The solid job gains that were initially reported in April and May were also revised lower. The economy is growing modestly despite ongoing challenges. It expanded at a 2.1% annual pace in the first three months of the year, though some forecasts expect it will slow in the April-June quarter.
US hiring falls to just 57,000 in June amid elevated inflation, global turmoil
US employers significantly slowed hiring last month, adding just 57,000 jobs, a stark contrast to previous months. This cautious approach signals lingering economic unease, despite a slight dip in the unemployment rate. Inflation remains high, and consumer confidence is low, prompting businesses to remain wary. While the economy shows modest growth, a slowdown is anticipated in the current quarter.
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