Healthcare and Professional Services Lead June Hiring; Leisure Sector Slumps
The U.S. added only 57,000 jobs in June 2026, with healthcare, social assistance, and professional services driving modest gains while leisure and hospitality declined 61,000 positions.
The U.S. labor market showed signs of cooling in June 2026, with the official Employment Situation report revealing a significant slowdown in hiring compared to earlier months. Nonfarm payroll employment increased by just 57,000 jobs—roughly half the median economist forecast of 113,000—while the unemployment rate held steady at 4.2 percent.
Where the Jobs Are
- Healthcare: Added 22,000 jobs and remains a consistent bright spot
- Social assistance: Grew by 25,000 positions
- Professional and business services: Increased by 36,000 jobs, continuing a strong run since October 2025
- Leisure and hospitality: Lost 61,000 jobs, reflecting weaker-than-usual seasonal hiring after adding 40,000 in May
Other major sectors—including manufacturing, construction, retail, transportation, and government—saw little or no change. Average hourly earnings continued to moderate, rising 3.5% over the year, down from rates of 3.7% to 4.0% seen between June 2025 and February 2026.
Data diverged between the employer survey (showing 57,000 payroll gains) and the household survey (showing 833,000 fewer people employed since January). This divergence reflects people leaving the labor force entirely rather than finding new work, with total civilian employment declining by 833,000 in the first half of 2026 despite payroll growth.
For job seekers and expats considering U.S. employment, the June slowdown suggests a more competitive hiring environment. Healthcare, social services, and skilled professional roles remain the most accessible pathways to employment, while hospitality and tourism-dependent sectors face headwinds. Wage growth is moderating, so salary expectations should reflect the current environment. If you are between jobs, sectors like nursing, social work, IT, and business consulting offer better prospects than leisure and hospitality.
Sources
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