US economy adds just 57,000 jobs in June, weakest hiring since February as wages lag inflation

USA: The US labour market showed fresh signs of strain in June, with the economy adding just 57,000 jobs, which was the lightest month of hiring since February, when the labour market contracted, while wage growth continued to fall short of inflation for a third consecutive month.

According to NBC News, average hourly earnings rose 3.5% in June, well below the most recent inflation reading of 4.2%, meaning workers are continuing to lose purchasing power in real terms despite remaining employed. The unemployment rate dipped slightly to 4.2% from 4.3%.

Downward revisions make the picture worse

The headline figure was worsened by significant downward revisions to prior months. April’s hiring figures were cut by 31,000 jobs, while May was revised down by 43,000, bringing the average monthly job growth over the past 12 months to just 36,000, according to the Bureau of Labor Statistics (BLS).

The BLS noted that revisions are a standard part of the data collection process, resulting primarily from additional reports received from businesses and government agencies after initial estimates are published.

Where hiring slowed, and where it contracted

Health care, which has been the primary driver of labour market growth through 2025 and into this year, added just 22,000 jobs in June, which is reportedly below its 38,000 monthly average over the past year.

Leisure and hospitality contracted by 61,000 jobs. This is a closely watched metric given that hotel and restaurant activity often provides an early signal of consumer spending pullbacks. The contraction was notable given that some economists had anticipated a boost from the FIFA World Cup, which runs from early June through mid-July at 11 US stadiums. According to NBC News, JPMorgan Chase chief US economist Michael Feroli wrote there was “no obvious sign of a World Cup jobs boost.”

The BLS also noted that oil and gas, construction, manufacturing, retail trade, transportation, financial activities, and government all “showed little or no change over the month.”

Wall Street cautiously optimistic, others more guarded

Some economists pointed to silver linings. Feroli described the report as “not quite as peppy” as the prior three months but said it still pointed to “overall general health in the labour market,” adding that after revisions he still viewed recent hiring trends as decent.

Others were more measured. Wells Fargo senior investment strategy analyst Jennifer Timmerman said the picture was “consistent with labour-market stabilisation from weakness in late 2025, rather than renewed strength.” Citigroup economists warned that the “low-hiring environment will imply further weakening in job growth and rising unemployment later in the year.”

The report was released on Thursday rather than the traditional Friday due to the US bond and stock markets being closed on July 4 for Independence Day.

Netizens react

The jobs report drew sharp reactions online, with many commenters questioning both the numbers themselves and what they actually mean for ordinary workers.

Several pushed for more data. “The cost of living has gotten so bad that these numbers need to be broken down between part-time and full time, and a living wage vs. a non-living one,” one commenter wrote, pointing to the gap between raw job counts and what those jobs actually provide for workers trying to get by.

Others flagged that the June figure may yet look worse once revised. “We should revisit this in a few months when the number is revised down. Then we can all discuss how alarming it is that job growth is stagnant when hospitality should have shown strong growth for vacation season,” one netizen wrote.

Trust in the data itself came up repeatedly. “I have a hard time trusting any numbers released. This administration has already said it’s changing what data they pull from and the methods used to arrive at its conclusion. So it’s reasonable to say we’re deep into a recession at this point and the only people who don’t see it are the ones in power,” a sceptical Redditor said.

One user focused on the revision story rather than the headline: “The 57k jobs number is disappointing, but the downward revisions make that report even weaker; it looks like the labour market has been slowing for a while and not just slowing in June.”

And one commenter took a more sardonic long view: “Wow, these headlines from 20 years ago are still really relevant; good thing the people who represent us are actually doing something about it.”

Read also: ‘We’re not failures’—Reddit’s brutal portrait of America’s worst job market in 17 years