Hiring cools in June, signaling slower labor market
By Tom LoBianco | Quincy News Correspondent
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Quincy News (Quincy News) — WASHINGTON — U.S. job growth slowed in June, adding to evidence that the labor market is cooling. The Bureau of Labor Statistics reported Thursday that nonfarm payroll employment increased by 57,000 in June, while the unemployment rate edged down to 4.2% from 4.3%.
The report also revised April and May payrolls down by a combined 74,000 jobs. April was revised to 148,000 from 179,000, and May was revised to 129,000 from 172,000.
Taken together, the data point to a labor market that is losing momentum but not sharply deteriorating. BLS said June payroll growth was about in line with the average monthly gain over the prior 12 months.
“It’s nothing to be jumping up and down about, it’s not the end of the world. I’d say it’s more of a ‘meh’ economy,” said David Mitchell, an economics professor and director of the Bureau for Economic Research at Missouri State University. “I wouldn’t say it’s a red flag, maybe say it’s a yellow flag.”
The weaker June reading reinforces the view that hiring is cooling after a stronger spring.
Leisure and hospitality lost 61,000 jobs in June, reflecting “weaker than usual seasonal hiring,” BLS said.
Mitchell said the weakness in leisure and hospitality could point to households pulling back on discretionary spending, including summer travel, as higher prices continue to weigh on budgets.
The decline in the unemployment rate came alongside a drop in labor force participation, a sign that fewer people are either working or seeking work. The labor force participation rate fell 0.3 percentage point to 61.5% in June.
Mitchell noted that some decline in participation is structural, driven by demographic trends such as the ongoing retirement of Baby Boomers. For policymakers, the report adds to evidence of a cooling labor market, though wage growth remained firm. Average hourly earnings rose 0.3% in June and 3.5% from a year earlier.
The report quickly drew political reactions. On X, White House Press Secretary Karoline Leavitt wrote that the “foreign-born labor force has fallen sharply over the past year.” BLS nativity data do show a year-over-year decline in the foreign-born labor force, though the agency says its surveys do not identify legal status. House Democrats, also on X, countered that “The Trump economy is FAILING hardworking Americans.”
The data point to a mixed outlook. The labor market is cooling, which could ease price pressures, but it also raises questions about the strength of growth.
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