U.S. Unemployment Falls to 4.2% as Job Growth Misses Expectations

WASHINGTON — The U.S. unemployment rate edged down to 4.2% in June, while employers added just 57,000 jobs, far below economists’ expectations of roughly 110,000, according to data released Thursday by the Bureau of Labor Statistics (BLS).

The report showed job gains in professional and business services, healthcare and social assistance, while employment in the leisure and hospitality sector fell by 61,000 jobs, an unexpected decline during the FIFA World Cup being hosted in several U.S. cities.

The BLS also revised April and May payroll figures downward by a combined 74,000 jobs, signaling a softer labor market than previously reported.

White House spokesperson Kush Desai said the report demonstrated that the labor market remains resilient under President Donald Trump’s economic agenda, highlighting continued gains in manufacturing.

The number of unemployed Americans declined to approximately 7.1 million, down from 7.3 million in May.

Unemployment remained highest among teenagers at 14.6% and Black workers at 6.6%. The unemployment rate increased for Hispanic workers to 5.2% and Asian workers to 3.9%, while falling slightly among adult women to 3.7%.

Professional and business services added 36,000 jobs in June, followed by social assistance with 25,000 and healthcare with 22,000, although hiring in healthcare slowed compared with the average monthly gains over the previous year.

Employment showed little or no change across several major industries, including manufacturing, construction, retail, wholesale trade, transportation, financial services and government.

The employment report comes as the Federal Reserve continues to monitor labor market conditions alongside inflation and economic growth. In June, the central bank kept its benchmark interest rate unchanged at 3.5% to 3.75% during its first meeting under new Chair Kevin Warsh.