# US Job Growth Slows Sharply in June to Just 57,000  
**Published:** 2026-07-02T22:15:36.000Z  
**Source:** [Nebraska Examiner](https://nebraskaexaminer.com/2026/07/02/repub/us-labor-market-weakened-in-june/)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://lincolne.news/article/us-job-growth-slows-sharply-in-june-to-just-57-000

The nation's job market weakened significantly in June, with employers adding just 57,000 positions—a sharp decline from the previous three months and well below expectations, according to a [report](https://www.bls.gov/news.release/empsit.nr0.htm) released Thursday by the U.S. Bureau of Labor Statistics.

The Bureau of Labor Statistics reported Thursday that American employers added 57,000 jobs to their payrolls last month, missing the forecast of 115,000 jobs. The slowdown extends beyond June, as the May total, which had been much stronger than economists had anticipated, was cut by 43,000, while April's figure came down 31,000 to 148,000.

While the unemployment rate, at 4.2 percent, and the number of unemployed people, at 7.1 million, changed little in June, the improvement came for concerning reasons. The unemployment rate, however, dropped to 4.2%, largely due to a slump in the labor force participation rate, which fell 0.3 percentage point to 61.5%, the lowest since March 2021.

Job gains were concentrated in specific sectors. Employment in professional and business services continued to trend up in June (+36,000). Social assistance added 25,000 jobs in June, primarily in individual and family services (+17,000). In June, employment in health care continued its upward trend (+22,000) but at a slower pace than the average monthly gain over the prior 12 months (+38,000).

The leisure and hospitality sector experienced a significant reversal. Leisure and hospitality employment declined by 61,000 in June, reflecting weaker than usual seasonal hiring. Economists had anticipated potential gains from the men's World Cup soccer tournament, which may have boosted hiring in May instead.

Though job growth has weakened in 2026, it has remained near its 1990-2026 average and growth rates leading up to the pandemic. Although near-term developments may suggest some softening in the labor market, the softening has followed a period of significant strength, and has been a return to historical norms. For Nebraska, though job growth has slowed in recent months, labor scarcity has remained a concern in Nebraska. While labor scarcity improved in Nebraska from the post-pandemic peak in 2022, there were still more open jobs in 2025 than unemployed people available to fill them.

## Sources

- [Nebraska Examiner](https://nebraskaexaminer.com/2026/07/02/repub/us-labor-market-weakened-in-june/)
- [U.S. Bureau of Labor Statistics Employment Situation report for June 2026](https://www.bls.gov/news.release/empsit.nr0.htm)
- [Federal Reserve Bank of Kansas City analysis of Nebraska labor market conditions](https://www.kansascityfed.org/omaha/nebraska-economist/nebraskas-job-market-steady-but-uneven-and-facing-uncertainty/)

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This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Nebraska Examiner, enriched with 2 web searches. The original source is available at https://nebraskaexaminer.com/2026/07/02/repub/us-labor-market-weakened-in-june/.