Record Number of Americans Outside Workforce as Hiring Slows in June
In June 2026, the number of Americans not participating in the workforce reached a record 105.8 million, surpassing the previous high set during the 2020 shutdown. This increase is attributed to a slowdown in hiring, with only 57,000 jobs added in June, following downward revisions for April and May. The unemployment rate slightly improved to 4.2%, but this was due to a decrease in labor force participation, which fell to 61.5%. Key sectors like manufacturing, retail, and transportation remained flat, while professional and business services, social assistance, and healthcare saw modest job gains. The Federal Reserve's recent meeting maintained interest rates between 3.50% and 3.75%, with future policy adjustments anticipated due to the current labor market conditions. 
