US nonfarm payroll employment rose by 57,000 jobs in June 2026, much lower than the consensus forecast of around 110,000 to 115,000, according to the Bureau of Labor Statistics (BLS) official government report [1, 2, 3, 4, 5, 6]. Private payrolls increased by 98,000 jobs in the same month based on ADP data, which was also below expectations of 110,000 to 118,000 [7, 8, 9, 10].

The US unemployment rate fell slightly to 4.2% in June from 4.3% in May 2026, reflecting a modest tightening of the labor market despite slowing job gains [1, 2, 3, 4, 5, 6]. Labor force participation declined 0.3 percentage points to 61.5%, the lowest level since March 2021, indicating fewer people actively seeking work despite the lower unemployment rate [3, 4, 5, 6].

Sectoral employment showed uneven patterns in June. Leisure and hospitality shed 61,000 jobs despite expectations for seasonal gains boosted by World Cup tourism, as Jim Baird of Plante Moran Financial Advisors noted that the expected hiring surge from domestic and foreign travelers "either didn't materialize or was more than offset by losses elsewhere" [3, 4, 11, 5, 6]. In contrast, professional and business services added 36,000 jobs, social assistance gained 25,000, and healthcare increased by 22,000 jobs [3, 4, 5, 6].

Revised figures showed that employment gains for April and May 2026 were downward by a combined 74,000 jobs, with April revised down to 148,000 and May to 129,000 jobs, further underscoring the slowdown in recent job creation [2, 4, 5, 6].

Average hourly earnings increased by 0.3% month-over-month and 3.5% year-over-year in June 2026, signaling moderate wage growth amid the labor market slowdown [8, 3, 5, 6]. Planned layoffs dropped substantially, down 53% to 45,849 compared with the previous year, with Andy Challenger of Challenger, Gray and Christmas noting that "the pace of lay-offs cooled considerably in June" but cuts remain concentrated in technology as AI reshapes workforce needs [7].

Despite fewer layoffs and a falling unemployment rate, some unemployed workers face difficulties finding new jobs, and consumer surveys showed a rise in perception of jobs being "hard to get" to a nearly 5.5-year high in June 2026 [7, 1, 4]. Nela Richardson, Chief Economist at ADP, commented, "It’s taking people longer to find work, but there are also signs of labor supply constraints in certain industries," illustrating the mixed signals in the labor market [8].

The next major update on US labor market data will be for July 2026, expected in early August.