Job growth in the United States slowed in June, according to fresh data from the Bureau of Labor Statistics. The rate dipped by a tenth to 3.6%, signaling a cooling in the labor market even as the economy meets the ongoing pressure of policy moves aimed at taming inflation.
In June, the net number of jobs added was 209,000, a decline of 130,000 from May. This backdrop comes as markets and policymakers scrutinize the impact of the Federal Reserve’s rate increases on hiring and overall economic momentum.
The June figure trails the six-month average, which sits around 278,000. Looking back over recent years, the monthly average since 2022 has run higher; for example, the prior long-run benchmark hovered near 399,000 jobs per month. The slowdown in June suggests that even with a historically low unemployment rate, rate hikes are starting to leave a visible imprint on job creation.
President Joe Biden acknowledged the latest data, highlighting a cumulative total of about 13.2 million jobs added to the U.S. economy since January 2021. He also pointed to the unemployment rate remaining under 4 percent for 17 straight months, framing the period as strong job growth with more opportunities than in recent presidential eras. Biden described the approach as part of his economic agenda, dubbing it Bidenomics and emphasizing job creation, consumer affordability, and prudent investments that support working families.
The unemployment rate ticked down by a tenth in June after edging up in May, a pattern that mirrors fluctuations seen since May 2022. Over the prior year, the rate has oscillated roughly between 3.4% and 3.7%. In June, about 6 million Americans remained unemployed, while workforce gains were evident in sectors such as government, health services, welfare, and construction.
Average hourly earnings for private nonfarm payrolls rose by 12 cents in June, marking a 0.4% increase to $33.58 per hour. Over the past 12 months, average hourly earnings climbed 4.4% at a time when inflation figures remained a closely watched metric, recently reported around the 4% range. This wage growth occurs alongside the inflation trajectory, which has declined since the 2022 peak as the Fed’s policy measures take effect.
In mid-June, the Federal Reserve signaled a temporary pause on rate hikes, while cautioning that additional increases could be warranted if inflation or labor conditions shift. The policy range stands at 5% to 5.25%, a high-water mark not seen since the mid-2000s. The timing of any future adjustments will hinge on key macroeconomic indicators, including unemployment and price pressures. The Fed’s next policy gathering is scheduled for late July, with markets watching closely for signals on the path forward.
Overall, the June data reflect a labor market that remains resilient in some areas while showing signs of normalization in others. The continued strength in government, health, welfare, and construction employment illustrates ongoing demand across public and private sectors, even as overall job creation cools from recent peaks. Analysts expect the trend to evolve as monetary policy calibrates against evolving inflation metrics and growth indicators, underscoring the delicate balance policymakers aim to maintain between supporting employment and containing price increases. (BLS) (White House remarks) (Federal Reserve communications)