US jobs growth slows sharply in June, adding just 57,000 roles

The weak print follows a soft ADP report and raises the odds of a Fed pause, with markets likely to bid up equities and push Treasury yields lower.

By Handelsavisen Newsroom · Automated 2026-07-02 12:33 UTC · 1 min read

The US economy added just 57,000 jobs in June, falling well short of the 115,000 increase expected by Dow Jones consensus economists.

The unemployment rate ticked down to 4.2%, a marginal improvement that did little to offset the sharp deceleration in hiring activity.

The data confirms a broadening slowdown in the labor market, following an earlier report from ADP that showed private-sector employers added only 98,000 jobs in June.

The data confirms a broadening slowdown in the labor market, following an earlier report from ADP that showed private-sector employers added only 98,000 jobs in June.

That private-sector print had already signaled weakening momentum in the second half of the second quarter, and the official government figures now validate those concerns.

For investors, the miss is significant.

The labor market has been the primary pillar supporting the Federal Reserve’s higher-for-longer interest rate stance.