Quick overview
- Employers in the U.S. added 98,000 jobs in June, falling short of the expected 120,000 but indicating ongoing economic growth.
- The majority of job growth was seen in the health and education sectors, with financial services contributing about 15%.
- Two consecutive months of job growth and GDP increases suggest that the U.S. economy is improving and moving towards expansion.
- Fears of a hiring recession are diminishing as various sectors show rising labor demand and stock markets reach new highs.
Employers in the United States added 98,000 jobs in June, below the expected 120,000, but keeping up May’s upward trend and pointing toward economic growth.
Payroll tracker ADP reported that 98,000 jobs were added in June, which builds on May’s unexpected increase and indicates a strong economy. While the May uptick could have been a fluke, with June’s numbers also showing growth, a large trend is emerging that is moving toward economic expansion.
The majority of job growth came from the health and education sectors. About 15% of the growth came from financial services. Labor demand is on the rise, continuing to subvert expectations about where the economy is at and where it is headed.
Gross Domestic Product Climbs as Jobs Situation Improves
Early in January, we reported worries over the state of the U.S. economy, particularly with regards to the Gross Domestic Product (GDP). The GDP was still growing at that point, but not at the same rate as the year before. However, Bureau of Economic Analysis data shows that GDP growth was up 2.1% for the first quarter of 2026 and then another 0.5% for the second quarter
Two months of job growth, coupled with two quarters of GDP growth, indicate that the U.S. economy, while not as robust as at some periods in the past, is improving. The data tells us that the economy is doing more than simply finding stability. It is growing at an appreciable rate and could continue to do so throughout the next few months as well. We expect that July’s jobs report predictions will also be positive and will anticipate growth.
Fears of a hiring recession are fading, and there are sectors where job growth is on the rise. It is not just one or two sectors either, and the numbers paint a rosy picture of the market and where it is moving. If there were severe fear from employers that a major bubble is forming and could burst at any time, they would not be so keen to take on new employees, but the GDP and jobs reports show steady upward progress.
Now climbing out of a low-hire, low fire trend, the domestic labor market is moving past the slowdown that occurred after the post-pandemic boom. Stock markets continue to show signs of growth, with the Dow achieving a record high this week. Cautious growth is happening all across the country and in numerous sectors. There is no boom in the overall economy just yet, but what is happening is stabler than any short-lived economic boom.
Timothy St. John
Financial Writer – European & US Desks
www.fxleaders.com