U.S. job growth slows in June – Report

The U.S. economy added the fewest jobs in two and a half years in June, but persistently strong wage growth pointed to still-tight labor market conditions.

The Labor Department’s closely watched employment report on Friday also showed 110,000 fewer jobs were created in April and May, indicating that higher borrowing costs were starting to dampen businesses’ appetite to continue boosting headcount.

There was also a jump in the number of people working part-time for economic reasons last month, in part because their hours had been reduced due to work slack or business conditions.

Nevertheless, the pace of job growth remains strong by historical norms and was further evidence that the economy was far from a dreaded recession.

Nonfarm payrolls increased by 209,000 jobs last month, the smallest gain since December 2020, the survey of establishments showed.

While the higher paying industries such as technology and finance are purging workers, sectors like leisure and hospitality as well as local government and education are still catching up after losing employees and experiencing accelerated retirements during the COVID-19 pandemic.

Government employment increased by 60,000, boosted by a 59,000 rise in state and local government payrolls.

Government employment remains 161,000 below its pre-pandemic levels.

Healthcare payrolls rose by 41,000 jobs, reflecting increases in hiring at hospitals, nursing and residential care facilities as well as home health care services.

Reuters/Hauwa Abu