The U.S. economy added 57,000 jobs in June, roughly half the consensus forecast, while the unemployment rate edged down to 4.2%, the lowest in a year. The Bureau of Labor Statistics also revised May's gain down to 129,000 from an initially reported 172,000, and April's final print was lowered to 148,000. Average hourly earnings rose 0.3% month-over-month and 3.5% year-over-year, both in line with estimates, but labor force participation slipped to 61.5%, its weakest since May 2021. Professional and business services led gains with 36,000 jobs, while leisure and hospitality shed 61,000 positions, including 55,000 in food services. Initial jobless claims fell to 215,000, slightly below expectations, and continuing claims edged up to 1.814 million.
Automatic Data Processing IncWeak jobs report signals slower economic growth, reducing demand for ADP's payroll and HR services.