US job growth slowed more than expected in June

By Alicia Wallace, CNN

(CNN) — The US economy added far fewer jobs than expected last month, with just 57,000 added in June, according to Bureau of Labor Statistics data released Thursday.

June’s tally is a cooldown from May’s gains of 129,000 jobs and came in well below economists’ expectations for 100,000 jobs to be added. The unemployment rate dropped to 4.2% from 4.3%.

Thursday’s report showed that leisure and hospitality businesses shed 61,000 jobs last month, reflecting weaker-than-usual seasonal hiring, the BLS noted in the report.

That sector — which is closely watched as a gauge for consumer health, since it can be tied to discretionary spending — was expected to be a wild card: Economists were unsure as to how much World Cup-related events lifted hiring in May and June.

The labor market has been contending with a range of headwinds, including an aging demographic, the rapid adoption of AI, and a recent spike in oil prices from the war in the Middle East.

This story is developing and will be updated.

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