The U.S. labor market added just 57,000 jobs in June, the Bureau of Labor Statistics reported Thursday, landing far below the 115,000 Dow Jones consensus estimate and marking the weakest month of hiring in over a year. The disappointing report comes as the Federal Reserve continues its battle to contain inflation while balancing employment goals.
Revisions reveal softer trend
The BLS revised down May's payrolls gain by 43,000 to 129,000 and April's by 31,000 to 148,000, painting a picture of a cooling economy that had appeared stronger in preliminary readings. Private payrolls added 98,000 jobs in June according to ADP data, while pay for job-stayers rose 4.4% year-over-year.
Sector breakdown
Social assistance added 25,000 jobs and healthcare employment rose by 22,000, though the latter was below its normal monthly pace. Leisure and hospitality saw declines. The manufacturing and construction sectors, which had powered earlier pandemic recovery, showed little net growth.
Fed implications
Fed Chair Kevin Warsh, in his first press conference last month, emphasized price stability and a continued focus on the 2% inflation target. The sluggish jobs data may ease pressure for further rate hikes but also raises questions about whether the economy is heading for a sharper slowdown than anticipated.