US job growth settled down after a spring surge, as employers added a lower-than-expected 57,000 positions last month, according to Bureau of Labor Statistics data released Thursday.
June’s tally is a marked cooldown from solid gains previously reported for the three months prior. Monthly totals for April and May were revised down by a combined 74,000 jobs, to 148,000 and 129,000, respectively. The picture that emerges is one of a labor market that’s decidedly stronger than its paltry state in 2025 — but one that’s been steadily slowing since March.
Thursday’s data also showed that the unemployment rate dropped to 4.2% from 4.3% as more people left the labor force.
“May’s larger gain briefly suggested the tide might be turning; June makes clear it was the exception, not the new rule,” Laura Ullrich, director of economics at Indeed Hiring Lab, wrote in commentary on Thursday. “On its face, this is a modest but fine report. The trouble is what ‘fine’ has come to mean: June’s gain isn’t evidence of a strong current drawing people in.”
The labor market has been contending with a range of headwinds, including an aging demographic, the rapid adoption of AI, and a recent spike in oil prices from the war in the Middle East.
