By Harriet Torry

The U.S. added 57,000 jobs in June, the Labor Department said Thursday, missing expectations.

The unemployment rate ticked down to 4.2% in June. Economists had expected 4.3%.

The context

Halfway through 2026, the U.S. economy is continuing to hum thanks to solid consumer spending and strong business investment in artificial intelligence.

Hiring has stabilized in recent months after a weak patch during the fall and winter.

"The jobs data's been moving in a good direction," Kevin Warsh said last month at his first news conference as Federal Reserve chairman, after officials held interest rates steady.

Gasoline prices

Inflation has picked up because of the conflict in Iran. That has eaten into wage gains and weighed on consumer sentiment. Measures of consumer confidence rose slightly in June on lower gasoline prices, but households continue to feel stressed about the cost of living and the labor market. The Conference Board said Tuesday that the percentage of consumers saying jobs were "hard to get" rose to the highest level last month since January 2021.

Gasoline prices, which spiked after the start of the Iran war, have eased in recent weeks, although they remain above their year-earlier levels.

Write to Harriet Torry at harriet.torry@wsj.com

(END) Dow Jones Newswires

July 02, 2026 08:33 ET (12:33 GMT)