US Employers Report Job Additions Despite Hospitality Sector Dip
Economy News 2 min read 4 views

US Employers Report Job Additions Despite Hospitality Sector Dip

Amanda Brown
Jul 18, 2026 5:43 AM
Updated: Jul 18, 2026 5:45 AM
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WASHINGTON—U.S. employers continued to add jobs in June, though hiring slowed and the leisure and hospitality sector posted a sharp decline, underscoring a labor market that remained resilient but uneven across industries, according to data released by the U.S. Bureau of Labor Statistics.

Total nonfarm payroll employment increased by 57,000 jobs in June, while the unemployment rate held largely steady at 4.2%, the Labor Department said. Employment gains were concentrated in professional and business services, social assistance and health care, offset in part by losses in leisure and hospitality.

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Professional and business services added 36,000 jobs during the month, continuing a recovery that has been underway since late 2025. Social assistance employment rose by 25,000, led by individual and family services, while health care added 22,000 positions, including gains in hospitals.

Leisure and hospitality, however, shed 61,000 jobs, with the Labor Department attributing the decline to weaker-than-usual seasonal hiring. The agency said the sector has recorded little net employment growth so far in 2026 despite expectations that major events, including the FIFA World Cup, could support hiring.

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Average hourly earnings for private-sector workers rose 0.3% from the previous month and were up 3.5% from a year earlier, indicating wage growth remained moderate. Employment changed little in most other major industries, including manufacturing, construction, retail trade, transportation and warehousing, financial activities and government.

The June report also included downward revisions totaling 74,000 jobs for April and May, indicating hiring during the spring was weaker than previously estimated. Economists said the latest figures pointed to a labor market that continued to expand but at a slower pace than earlier in the year.

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Separate Labor Department data released this week showed initial claims for unemployment benefits fell to 208,000 for the week ended July 11, the lowest level in 10 weeks, suggesting layoffs remained historically low despite slower hiring.

The Federal Reserve's latest Beige Book likewise described labor market conditions as generally stable, with employment rising modestly and wage pressures remaining subdued across many regions ahead of policymakers' next interest-rate meeting.

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