US Unemployment Falls in June as Labor Force Shrinks

The US unemployment rate dropped to 4.2% in June 2026, down from 4.3% in May and below expectations, as many people left the workforce. The number of unemployed fell by 213,000 to 7.09 million, while total employment declined by 507,000 to 162.26 million. The labor force contracted by 720,000 to 169.36 million, with the participation rate falling to 61.5%, its lowest since March 2021. The employment rate also dipped to an over four-year low of 59.0%. The broader U-6 unemployment rate, which includes discouraged and underemployed workers, decreased to 7.9% from 8.1%.

The US unemployment rate remained at 4.3% in May 2026, matching market expectations. The number of unemployed decreased by 66,000 to 7.31 million, while total employment increased by 149,000 to 162.77 million. The labor force grew by 83,000 to 170.08 million, with the participation rate unchanged at 61.8%, its lowest since October 2021. The employment rate inched up to 59.2% from a four-year low of 59.1%. The broader U-6 unemployment rate, which includes discouraged and underemployed workers, fell to 8.1% from 8.2%.

The US unemployment rate held at 4.3% in April 2026, in line with market expectations. However, the number of unemployed rose by 134,000 to 7.37 million, while total employment fell by 226,000 to 162.62 million. The labor force shrank by 92,000 to 170.0 million, pushing the participation rate down 0.1 percentage point to 61.8%, its lowest since October 2021. The employment rate also declined to 59.1%, the lowest in over four years, from 59.2%. Meanwhile, the broader U-6 unemployment rate, which includes discouraged and underemployed workers, increased to 8.2% from 8.0%.