The June jobs report is in: the economy is still growing and unemployment looks poised to turn downward, but the numbers came in disappointing.
The U.S. economy added only about half the jobs that were expected in June, a mere 57,000 compared with the 115,000 jobs forecast. The numbers for both April and May, which had initially shown high levels of job creation, were revised downward. Even so, the average for the first half of 2026 stands at around 92,000 jobs added each month—strong relative to last year, and especially strong compared with the second half of 2025, which saw an average decline of 8,000 jobs per month.
.@cvpayne on the June jobs report: "Overall, it's a solid number. It points to an economy that's strong, that's resilient, that's growing. Unemployment rate went down. So, all in all, it's fantastic." pic.twitter.com/BYxahUN5tD
— Rapid Response 47 (@RapidResponse47) July 2, 2026
JUST IN: A disappointing jobs report. The US economy added 57,000 jobs in June (below expectations of 115k). Hospitality jobs decline by -61k. Plus, April and May were revised lower by -74,000.
— Heather Long (@byHeatherLong) July 2, 2026
The unemployment rate fell to 4.2% --> the lowest in a year, but mainly due to a big… pic.twitter.com/h5Wkq8640L
The big picture: It's a better job market than a year ago, but the opportunities are limited.
— Heather Long (@byHeatherLong) July 2, 2026
2024 jobs added average: 122,000 a month
2025 jobs added average: 10,000 a month --> "hiring recession"
2026 jobs added average (so far): 92,000 a month
Healthcare and social… pic.twitter.com/2qzpFDFmYP
Healthcare and social assistance positions drove the job growth, adding 47,000 jobs, while hiring in the leisure and hospitality sector dropped by 61,000 in June. Manufacturing and construction jobs, however, increased, likely attributable to the AI boom, which is driving the construction of new data centers and other AI-related infrastructure.
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The Wall Street Journal credited the continued hum of the U.S. economy to the artificial intelligence industry, which has encouraged greater investment in the economy.
Unemployment numbers were the most promising, falling slightly below expectations at 4.2 percent instead of 4.3 percent. Even so, the labor force continued to shrink, in part due to the Trump administration's immigration policy, dropping by an additional 720,000 from May to June.
CNBC: "The unemployment rate dropping down another 10th. This is very fascinating. 4.3% expected 4.2% — would be the lowest rate since June of '25, one year." pic.twitter.com/3ogPiWoUXj
— RNC Research (@RNCResearch) July 2, 2026
Unfortunately for President Trump, the latest numbers may tie the Feds hands: with inflation still well above the 2 percent target, core CPI running around 2.9 percent as of Jun, policymakers are almost certain to hold rates steady and may even keep the door open to further hikes if price pressures don’t ease.
The failure to lower interest rates was what primarily drove a wedge between President Trump and the last chair of the Federal Reserve, Jerome Powell, who earned the nickname “Too Late Powell.” The president’s new pick, Kevin Warsh, only became Fed Chair in late May and has been unable to lower rates, primarily due to the combination of high inflation and a hot labor market.
The next inflation report is expected to be released on July 14.
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
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