The United States economy added 57,000 jobs in June, a slowdown reported by the US Labor Department on July 2, 2026. Despite expectations for job growth fueled by the ongoing FIFA World Cup, the leisure and hospitality sectors experienced a significant decline, shedding 61,000 jobs ahead of the busy summer season.
Job Market Overview
The monthly employment report revealed a downward revision in previous months’ job figures. The May jobs report was adjusted to 129,000 from 172,000, while April was revised down by 31,000 jobs to 148,000.
The job gains in June were primarily concentrated in a few sectors. Notably:
- Professional and business services: +36,000 jobs
- Healthcare: +22,000 jobs
- Social assistance: +25,000 jobs
Other sectors, including mining, construction, and manufacturing, showed no significant changes, indicating stagnation in overall job creation.
Impact of the FIFA World Cup
Despite the anticipation of an influx of tourism related to the FIFA World Cup, job losses in the hospitality sector came as a surprise. Goldman Sachs had predicted the tournament would contribute an additional 40,000 jobs in June, highlighting the unexpected downturn.
In addition to the job losses, the unemployment rate fell slightly from 4.3 percent to 4.2 percent. However, the broader U-6 unemployment rate decreased from 8.1 percent to 7.9 percent, reflecting a slight improvement in overall employment conditions.
Economic Context and Future Outlook
The labor force participation rate, however, declined by 0.3 percent to 61.5 percent, marking its lowest level since March 2021. This decline raises concerns about the overall health of the labor market.
The ADP private payroll report indicated that 98,000 jobs were added for the month, suggesting that while hiring is slowing, the labor market remains stable. Nela Richardson, chief economist at ADP, noted, “The pace of hiring is telling a story of both supply and demand.”
Despite the disappointing job growth figures, US markets responded positively, with the Nasdaq and S&P 500 rising by 0.6 percent and the Dow increasing by 0.8 percent. Additionally, gold prices surged by 2 percent, reflecting investor confidence that the US Federal Reserve may hold off on interest rate hikes.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by Al Jazeera. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
