The United States economy added 57,000 jobs in June, reflecting a notable slowdown in hiring compared to previous months, according to data released Thursday by the Labor Department’s Bureau of Labor Statistics (BLS). This pace of job growth fell short of expectations amid revised downward figures for April and May.

The May employment increase was adjusted to 129,000 from an earlier estimate of 172,000, while April’s gains were lowered by 31,000 to 148,000 jobs. June’s modest job additions were concentrated primarily in professional and business services, which added 36,000 positions. Healthcare and social assistance sectors also showed growth, contributing 22,000 and 25,000 new jobs respectively.

In contrast, several key industries—including mining, oil and gas extraction, construction, manufacturing, wholesale and retail trade, transportation and warehousing, and financial activities—reported little to no change in employment levels. Notably, the leisure and hospitality sector shed 61,000 jobs during June, a period typically marked by seasonal employment gains boosted by summer tourism and events such as the FIFA World Cup. This decline was unexpected, with forecasts from Goldman Sachs predicting a 40,000-job increase linked to World Cup-related activity.

The unemployment rate edged down by 0.1 percentage points, settling at 4.2 percent, while the broader U-6 unemployment measure—which captures discouraged workers, marginally attached workers, and involuntary part-time employees—improved from 8.1 percent to 7.9 percent. However, the labor force participation rate dipped 0.3 percentage points to 61.5 percent, the lowest level since March 2021.

Other recent reports have underscored the stability, albeit with signs of cooling, in the U.S. labor market. The ADP private payroll report indicated 98,000 jobs were added in June, and labor turnover data showed little change in job transitions, suggesting workers are not actively moving between roles.

Nela Richardson, chief economist at ADP, noted that the hiring trends reflect a complex dynamic of both demand and supply constraints. She stated, “We know it’s taking people longer to find work, but there also are signs of labor supply constraints in certain industries. For now, the overall effect is a slowdown in job creation.”

Consumer sentiment data released earlier this week also highlighted growing pessimism about the labor market. A Conference Board survey showed a 22.5 percent increase in the proportion of respondents reporting that jobs are “hard to get,” indicating rising discouragement among job seekers.

Despite the softer employment figures, U.S. equity markets responded positively. The Nasdaq and S&P 500 both gained approximately 0.6 percent following the report, while the Dow Jones Industrial Average rose 0.8 percent. Meanwhile, gold prices, often viewed as a hedge during economic uncertainty, increased by 2 percent as investors recalibrated expectations for future Federal Reserve interest rate hikes.