June hiring was concentrated in a handful of sectors as job growth remains modest

Image (c) ConsumerAffairs - The U.S. economy added 57,000 jobs in June, with the business services sector adding the most.

Most of the hiring was in just three industries

  • U.S. employers added 57,000 jobs in June, a modest gain that kept the unemployment rate unchanged at 4.2%.

  • Professional and business services, social assistance and health care accounted for nearly all of the month's hiring, while leisure and hospitality lost 61,000 jobs.

  • The Labor Department also revised April and May job gains lower by a combined 74,000 jobs, suggesting the labor market has cooled more than previously reported.

The U.S. labor market continued to expand in June, but hiring remained subdued as employers added 57,000 jobs and the unemployment rate held steady at 4.2%, according to the Bureau of Labor Statistics.

The June gain was modest but roughly in line with the average monthly increase of 36,000 jobs over the previous year. However, nearly all of the month's hiring came from just three industries, while most major sectors showed little or no employment growth.

Professional and business services led all industries, adding 36,000 jobs. The sector has recovered steadily since reaching a recent low in October 2025 and has added 172,000 positions during that period.

Social assistance was another bright spot, adding 25,000 jobs, including 17,000 positions in individual and family services. Over the past year, the sector has averaged monthly gains of about 16,000 jobs.

Health care also continued to expand, adding 22,000 jobs in June. Hospitals accounted for 9,000 of those new positions. While hiring remained positive, the pace slowed from the industry's average monthly gain of 38,000 jobs over the previous year.

Leisure and hospitality posts biggest decline

The weakest performance came from the leisure and hospitality industry, which shed 61,000 jobs in June. The Labor Department attributed the decline to weaker-than-normal seasonal hiring. Despite the setback, employment in the sector has shown little net change so far in 2026.

Most other major industries were essentially flat during the month, including:

  • Construction

  • Manufacturing

  • Retail trade

  • Wholesale trade

  • Transportation and warehousing

  • Financial activities

  • Information

  • Mining and energy

  • Government

  • Other services

Labor market remains stable

The household survey showed little change in overall labor market conditions.

The unemployment rate remained at 4.2%, with about 7.1 million Americans unemployed. Jobless rates were largely unchanged across demographic groups, including adult men, adult women, White, Black, Asian and Hispanic workers.

Long-term unemployment remained elevated, with 1.9 million people unemployed for 27 weeks or longer. That figure is up by 286,000 compared with a year ago and represents 27.3% of all unemployed workers.

The labor force participation rate slipped 0.3 percentage point to 61.5%, while the employment-population ratio edged down to 59.0%.

Wage growth continues

Average hourly earnings rose 13 cents, or 0.3%, to $37.64 in June. Compared with a year earlier, wages increased 3.5%.

The average workweek for all private-sector employees remained unchanged at 34.3 hours.

The report also contained downward revisions to prior months' employment estimates. April payroll growth was revised down from 179,000 to 148,000 jobs, while May's gain was reduced from 172,000 to 129,000. Together, the revisions lowered previously reported employment by 74,000 jobs, reinforcing signs that hiring has moderated in recent months.


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