U.S. Employment Gains Weaker than Expected and Revisions Soften Previous Estimates

The U.S. added jobs for a fourth consecutive month, but saw weaker than expected employment growth in June, combined with downward revisions totaling 74,000 jobs in both April and May, suggesting labor market conditions were softer than previously reported. In June, there were some unexpected and significant swings month-to-month for certain employment sectors with the seasonally adjusted employment gain figures. Last month’s jobs leader – Leisure/Hospitality – went from an estimated gain of 70,000 jobs in May to a loss of 61,000 jobs in June, with losses in both accommodation (-21,700 jobs) and food services and drinking places (-32,900 jobs), despite the increase in World Cup tourism in June. Additionally, Professional/Business Services went from a 6,000-job gain to 36,000 jobs gained in June, Government swung from a 52,000-job gain in May to only a gain of 8,000 in June and Financial Services improved from a 22,000-job loss to a net zero change this month. June’s industry job leaders were Education/Health Services with a 69,000-job gain and Professional/Business Services. The Construction sector continued with solid momentum with an 11,000-job gain, while losses continued in the Information and Trade/Transportation/Utilities industries. Meanwhile, the U3 seasonally adjusted headline unemployment rate (from the survey of households) registered at 4.2% in June, a slight improvement from May and on par with the average unemployment rate since June 2024.

This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.