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The U.S. economy generated only 57,000 jobs in June 2026, the lowest figure since February, when the labor market reported a contraction, according to the monthly report from the Bureau of Labor Statistics (BLS) published this Thursday.
The data fell far short of market expectations and raised alarms about the strength of the labor recovery amid persistent inflation and high interest rates.
The unemployment rate slightly decreased to 4.2%, down from 4.3% recorded the previous month, although this decline was not enough to offset the overall outlook of the report.
The unemployment rate rose to 7.1%, although it is considered a very small change.
Employment continued to show an upward trend in the professional and business services sectors (36,000 jobs) and social assistance (25,000 positions).
Healthcare, which has been the primary driver of employment during 2025 and much of 2026, also lost momentum: it added only 22,000 workers in June, compared to its monthly average of 38,000 over the past year.
The leisure and hospitality sector was the hardest hit: it lost 61,000 jobs, a decline that particularly worries economists because activity in hotels and restaurants often foreshadows a slowdown in consumer spending.
For their part, the oil and gas, construction, manufacturing, retail, transportation, financial services, and government sectors showed few or no changes.
The report also included downward revisions of previous months, exacerbating the situation: job creation in April was reduced by 31,000 positions compared to the previous data, while the figure for May -initially reported at 172,000 jobs- was revised down by 43,000, bringing it to around 129,000.
In April, the economy had added 115,000 jobs, a figure that was also revised later.
Another concerning indicator is the average over the last 12 months: the BLS reported that monthly job creation during that period dropped to just 36,000 positions, a sign of structural weakening in the labor market.
This is compounded by the fact that wage growth has remained below inflation for the third consecutive month, which erodes the purchasing power of millions of workers.
The report was published this Thursday instead of the usual Friday because the stock and bond markets will be closed on July 3 in commemoration of Independence Day.
The macroeconomic context further complicates the interpretation of the data.
The inflation reached its highest level in three years in June, partly driven by the energy shock resulting from the war between the United States, Israel, and Iran, which began in February 2026, causing gasoline prices to soar to $4.55 per gallon.
The Federal Reserve is keeping interest rates in the range of 3.50% to 3.75% with no immediate signs of cuts, and in its latest meeting, it warned that increases "can no longer be ruled out" if inflation does not improve.
Some economists believe that the June data could signal a more pronounced slowdown in the labor market during the summer, in line with projections that place the likelihood of a recession at around 30% by the end of 2026.
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