U.S. job growth slowed sharply in June, with employers adding only 57,000 new jobs. This figure was significantly lower than the 100,000 to 115,000 hires predicted by economists and represents less than half of the previous month's total.
Despite the slow hiring, the unemployment rate dropped slightly to 4.2%, down from an expected 4.3%. However, the total number of unemployed people changed little as 720,000 individuals left the labor force.
The Bureau of Labor Statistics revised figures from the previous two months downward by a total of 74,000. May's figures were revised from 172,000 to 129,000, and April's were revised from 179,000 to 148,000. These results suggest companies maintain a cautious economic outlook, though private-sector job creation remained solid, marking the best three-month stretch for hiring in more than a year.
The Labor Department report provides important clues regarding the health of the U.S. economy, as the labor market shows modest signs of growth while curbing some of the momentum seen earlier this year.