By Kennedy Andara & Aurelia Glass
July 2, 2026--Today, the U.S. Bureau of Labor Statistics released its Employment Situation report for June 2026. The labor market added 57,000 jobs, coming in well below expectations, and job growth over the prior two months was revised down by 74,000. The unemployment rate dropped slightly to 4.2 percent, but this was entirely driven by people leaving the labor force rather than moving into employment. The data also showed that job growth over the past year was concentrated in low-wage industries.
Strong headline numbers in May led some economists to take a more upbeat outlook on the labor market and even predict that it will “thaw” in 2026, yet the recent downward revisions and uneven job growth since the start of the second Trump administration suggest that labor market growth remains weak. Additionally, underlying labor market weakness—as seen in elevated underemployment and unemployment durations—along with low churn undercut the narrative that the labor market is reaccelerating, especially as workers struggle to connect with good jobs and families continue to face affordability pressures.
New analysis from the Center for American Progress, using Federal Reserve Bank of Cleveland forecasts, shows that inflation is expected to outpace nominal hourly wages in June 2026, which landed at $37.64, for the third month in a row. Additionally, since June 2025, job growth has been concentrated in industries paying below-average wages, especially health care and social services.
These factors imply that job growth is failing to put more money into the pockets of working families. At the same time, the Trump administration has attacked key avenues by which workers can ensure their wages keep up with rising prices, imposing more barriers to forming unions and taking steps to weaken the minimum wage for millions of workers in private education and health services—the fastest-growing industry. -- READ MORE