U.S. employers pulled back on hiring in June
U.S. employers added only 57,000 jobs, less than half the previous month's total and a sign companies still have a cautious economic outlook.
Christopher Rugaber, Associated Press Christopher Rugaber, Associated Press
The Labor Department said Thursday that the unemployment rate declined to a low 4.2% from 4.3% in May, though the decline mostly occurred because many people out of work gave up looking and were no longer counted as unemployed.
The figures suggest businesses remain wary of the economy's health, with inflation at a three-year high and consumer confidence near post-pandemic lows. The job market has been stuck in a "low-hire, low-fire" rut in which the employed enjoy some job security while layoffs are low, but those out of work are struggling to get hired. Strong hiring in the spring raised hopes the economy was escaping that dynamic, but Thursday's report suggests it hasn't happened.
Strong job gains that were initially reported in April and May were revised lower. Hiring in May was marked down to 129,000 from 172,000, while April's job gains are now 148,000, down from an initial estimate of 179,000.
Restaurants, bars, and hotels cut 61,000 jobs, a sharp disappointment for those who expected the World Cup tournament that is taking place in multiple U.S. cities would lead to at least temporary job gains. Retailers also shed 7,500 jobs.
