Employers add 209,000 jobs in June, a slow but steady gain

The U.S. economy added 209,000 jobs in June, the smallest pickup in jobs since December 2020, signaling a slow but still strong labor market.

June’s job gains fell short of economists’ predictions, indicating that the labor market is cooling down from its peak last year.

The unemployment rate fell slightly to 3.6 percent, according to a Bureau of Labor Statistics report released Friday.

Fueling the payroll gains was the government sector, which added 60,000 jobs in June, but still remains below its pre-pandemic levels. Health care, a centerpiece of pandemic recovery economy gains, added 41,000 jobs, driven by increases in hospitals, nursing facilities and home health services. Construction also saw strong gains, adding 23,000 jobs, despite rising interest rates that have made buying homes more expensive.

The moderate job gains, combined with wage growth, will probably lead the Federal Reserve to resume interest rate hikes this month. The central bank has raised borrowing costs 10 times since last year, but held them steady in June.

The hardy job market, despite cooling, has helped prop up the broader economy, even as the Fed has taken aggressive action to slow things down. Despite higher borrowing costs, which have weakened major sectors including housing and manufacturing, employers are still adding jobs at a brisk pace. Layoffs remain low, and workers are getting raises.

As long as Americans remain employed, they’ve been able to keep spending, even in the face of persistent inflation.

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