US job growth slowed sharply in June with employers adding just 57,000 jobs, according to data released by the US bureau of labor statistics. The slump came even as the unemployment rate eased to 4.2% from May’s figure of 4.3%, with almost 7.1 million people reporting to have jobs.Non-farm payrolls rose by 57,000 in June, down from a revised 129,000 jobs in May, showing that hiring lost momentum during the month. The department said that hiring continued in some sectors but declined in others.“Employment continued to trend up in professional and business services, social assistance, and health care. Leisure and hospitality lost jobs,” the bureau said.The labour force participation rate fell by 0.3 percentage point to 61.5% in June. As fewer people remained in the labour force, there was little change in the overall number of unemployed people compared with May.The number of people unemployed for 27 weeks or more remained at 1.9 million in June, although it was 286,000 higher than a year ago.“The long-term unemployed accounted for 27.3% of all unemployed people in June,” the data showed.Professional and business services added 36,000 jobs during the month, while social assistance employment increased by 25,000, mainly in individual and family services. Healthcare added another 22,000 jobs, lower than its average monthly gain of 38,000 over the previous 12 months.Leisure and hospitality, however, lost 61,000 jobs in June as seasonal hiring was weaker than usual despite the Football World Cup taking place in the US.
Fewer lost their jobs
Separate data from the US labor department showed that layoffs remained low. New applications for unemployment benefits fell by 1,000 to 215,000 in the week ending June 27, lower than the 225,000 expected by analysts surveyed by FactSet.The four-week average of jobless claims fell by 2,500 to 222,000, while the number of people continuing to receive unemployment benefits rose by 2,000 to 1.81 million for the week ending June 20.The June jobs report was released a day earlier than usual because of the July 4 holiday.The latest data suggests the labour market remains stable even though hiring has slowed. A steady jobs market offers some relief to the US Federal Reserve, but inflation remains above its 2% comfort level.At its last policy review, the Federal Reserve kept the federal funds rate unchanged at 3.5-3.75%. Expectations of a rate hike later this year have increased because of high energy prices, even though crude oil prices fell after the US and Iran reached an interim peace agreement.
