June 2026 Jobs Report

Video Transcript

Hi, I'm Jeff Burnett, CEO of Labor Finders, and welcome to this month's Labor Market in a Minute for the month of May.

How many jobs were added to the economy?

Non-farm payroll employment increased by 172,000 jobs. This is a significant increase from the month of April. And the two priors months for March and April were revised and showed an increase of 93,000 jobs versus what was originally reported.

So this month's job data was significantly above expectations.

What is this month's unemployment rate?

The unemployment rate is 4.3%. This is the third consecutive month that is is unchanged.

What is the status of job openings?

Job openings surged in April to the biggest monthly gain in five years, but there is a hiring disconnect as new hires continue to be at low levels. The layoff rate is stabilizing to prior periods and reaching some levels of normalcy.

What is the inflation rate?

The Fed target rate, as we've discussed before, is 2%. Now, the inflation rate moved from April to May from 3.3% to 3.8%. So, inflation continues to be a significant problem in this economy. Last year, inflation rate for the entire year was 2.7%.

What is happening with interest rates?

The Fed has five meetings left this year. And it does not appear that they're in a position to make an interest rate in the near term. The fed continues to balance inflation interest rates in the labor market. And now, I think they're turning their attention away from the labor market, more towards inflation, and to figure out how they're going to be managing that.

How are tariffs and other administration policies affecting the job market?

The effect of the Middle East conflict does not affect this month's job data. Although energy prices are affecting business confidence and pricing.

What is the status of the GDP?

GDP increased to 2% as estimated for the first quarter of 2026 from half a percent in the first fourth quarter of 2025. The U.S. economy is performing well, considering the global geopolitical events.

What industries are adding jobs this month?

This last month, Leisure and Hospitality increased 70,000 jobs. Local government increased 55,000, Healthcare increased by 35,000 jobs, Social Assistance 12,000 jobs and Financial Activities sector lost 22,000 jobs last month. All other industries had little or no change.