US June 2026 jobs miss expectations, easing Fed rate‑hike pressure

The U.S. Labor Department reported that non‑farm payrolls increased by 57,000 jobs in June 2026, far below the 113,000 jobs economists had forecast. Revised figures also cut the May total by 74,000 jobs. The unemployment rate slipped to 4.2% from 4.3% as the labor‑force participation declined.

In the hospitality and tourism sector, employment fell by 61,000 jobs in June, contradicting President Donald Trump's pledge that the World Cup would generate 185,000 new jobs and add $17 billion to GDP. Analysts had expected a boom in hotel, restaurant and related services, but the sector instead continued a recent trend of job losses.

Average hourly wages rose 0.3% from the prior month, keeping wage‑inflation pressure alive. The weaker payroll numbers reduced market expectations for an imminent Federal Reserve rate increase, prompting equity markets to rise and the dollar to weaken. European stock indices also edged higher on the news, buoyed by the prospect of steadier U.S. monetary policy.