The United States economy added just 57,000 nonfarm payroll jobs in June, a sharp slowdown that fell well short of the 115,000 forecast by economists, according to a Bureau of Labor Statistics report released Thursday.
May's hiring was also revised down to 129,000 from the initially reported 172,000, and April's gains were lowered to 148,000 from 179,000, subtracting a combined 74,000 jobs from previous months.
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The unemployment rate edged down to 4.2% from 4.3% in May, but the decline was partly due to people leaving the labor force rather than finding jobs.
Mixed Sector Performance
Healthcare added 47,000 positions, and professional services expanded by 36,000 jobs.
However, retailers cut 7,500 jobs, and the hospitality sector slashed 61,000 roles despite ongoing World Cup matches in multiple cities.
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Chad Moutray, chief economist at the National Restaurant Association, noted that many Americans are struggling financially.
He described a K-shaped recovery where higher-income groups fare well while lower-income segments face challenges.
Nicole Bachaud, labor economist at ZipRecruiter, said the data highlights a mismatch between employer expectations and the skills of current job seekers.
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The broader economy grew at an annual rate of 2.1% in the first quarter, while the Federal Reserve's benchmark interest rate remains at about 3.6% ahead of its July policy meeting.
