Hiring worse than expected in June amid elevated inflation
HR recruitment manager holding resume in hands while having an interview in a modern office. (Xavier Lorenzo/Getty Images)
(NEW YORK) — Hiring slowed markedly in June, falling short of economists’ expectations and displaying a wobbly labor market amid elevated inflation set off by the Iran war.
The U.S. added 57,000 jobs in June, according to the federal government’s monthly jobs report, which marked a decline from 172,000 jobs added in May.
The sluggish pace recorded in June departs from strong performance for the labor market so far in 2026. Employers added a robust average of about 114,000 jobs each month from January to May, Bureau of Labor Statistics (BLS) data showed.
The unemployment rate fell slightly from 4.3% in May to 4.2% in June, the BLS said. Unemployment remains low by historical standards.
The professional and business services sector led job gains, adding 36,000 positions in June. Significant job gains also came in healthcare, though the pace of job growth slowed in that sector.
Hiring had proven unexpectedly resilient, despite a rise in costs borne by businesses and shoppers.
The Middle East conflict, which began on Feb. 28, prompted the Iranian closure of the Strait of Hormuz, a maritime trading route that facilitates the transport of about one-fifth of the global oil supply. The standoff triggered one of the largest oil shocks ever recorded.
The pace of annual inflation stands at 4.2%, clocking in at more than twice the Federal Reserve’s target rate of 2%.
The combination of elevated inflation and a resilient labor market has raised the chances of an interest rate hike, futures markets show, posing a risk for corporations eager to keep borrowing costs relatively low.
Federal Reserve Chair Kevin Warsh briefly sent stocks tumbling this month during his first press conference atop the central bank. Warsh voiced a commitment to bringing inflation down to the Fed’s desired level.
“Persistently high prices are a burden for the American people,” Warsh told reporters in Washington, D.C. “This committee will deliver price stability.”
Futures markets peg the odds of an interest rate hike in September at about 64%, according to the CME Group’s FedWatch Tool, a measure of investor sentiment.
To be sure, the path forward for interest rates remains highly uncertain. Oil and gasoline prices have eased in recent weeks in response to negotiations between the U.S. and Iran, offering hope of a cooldown of inflation in the absence of rate increases.
On Wednesday, Warsh weighed in on the bullish side of an ongoing debate among policymakers, investors and the general public about the potential impact of AI on the labor market and wider economy.
The technology could create jobs and boost productivity, strengthening the economy of the U.S. and other nations, according to Warsh.
“This is a big paradigm shift both for the conduct of our policy and for our economies,” Warsh said. “I think the jobs will be greater. Prosperity will be stronger.”
Workers at Spirit Airlines wait for passengers to arrive for their flights at O’Hare Airport on March 10, 2026 in Chicago, Illinois. (Scott Olson/Getty Images)
(WASHINGTON) — President Donald Trump said an announcement was expected Friday on Spirit Airlines, amid a report that the airline was preparing to cease operations after a $500 million rescue deal fell apart.
The Wall Street Journal first reported that the airline is preparing to shut down operations.
When asked if the administration had decided against bailing out Spirit Airlines, Trump told reporters on Friday, “I guess we’re looking at it. If we could do it, we do it, but only if it’s a good deal.”
“No institution’s been able to do it,” he continued. “I said ‘I’d like to save the jobs,’ but we’ll have an announcement sometime today. We gave them, we gave them a final proposal.”
ABC News has reached out to the White House for additional comment.
A spokesperson for Spirit Airlines declined to comment on ongoing discussions as it related to the WSJ report.
“Spirit is operating as usual,” the spokesperson said in a statement.
The Florida-based carrier is currently operating with over 40 flights in the air, according to FlightRadar24 data.
Other airlines have responded to the news saying they will be ready to help stranded passengers in the event that Spirit shuts down.
American Airlines told ABC News it will offer fare caps on main cabin tickets for routes they share with Spirit.
Similarly, United Airlines said they’re “preparing to support Spirit customers in the event of a shut down.”
“We are ready to support customers who may be impacted if Spirit Airlines ceases operations, with a focus on helping people continue their travel plans with low-fare options,” Frontier Airlines posted Friday on X.
ABC News previously reported that Spirit could run out of the cash it needs to keep operating within days, not weeks, according to sources familiar with the matter.
Spirit filed for bankruptcy for the second time last August — having previously filed for Chapter 11 bankruptcy protection in November 2024 — to restructure financially and “reduce its cost structure,” with hopes of emerging from Chapter 11 by the spring or summer of 2026.
The soaring price of jet fuel amid the ongoing war in Iran has had widespread impact on airlines and travel expert Katy Nastro, of airfare monitoring site Going, previously told ABC News that Spirit could be out of time to try and turn things around.
“It’s never a good sign to file bankruptcy to begin with, but a second within six months, even worse,” Nastro said. “Spirit suggested that they were going to be able to come out of bankruptcy this time by the spring. We’re in the spring now, we have higher jet fuel prices — this is a recipe for disaster for them.”
What travelers need to know about Spirit Airlines shutting down
Bradley Akubuiro, a crisis expert and former Boeing spokesperson, told ABC News that losing a budget airline like Spirit will raise the floor on airfares.
“Frontier, Allegiant, and Breeze are still flying, but Spirit was the biggest, and in the markets it dominated — Fort Lauderdale, Orlando, a lot of the Caribbean — there isn’t another carrier ready to backfill at the same price tomorrow,” he explained. “The pain isn’t immediate. It’s structural. A fare that used to be $89 is $140 six months from now, and most consumers won’t connect the two.”
When airlines liquidate, they immediately cease operations without notice, which means that passengers will be stranded and employees will not show up to work.
There is generally no airline assistance when it comes to helping stranded passengers after an airline shuts down operations.
For any ticketed passengers scheduled to fly Spirit or already in the middle of their trip, below are some tips from travel experts on how to navigate the situation.
Don’t immediately cancel your flight, Nastro advised, adding that travelers who cancel forfeit their right to a refund. And make sure to keep all records and receipts.
If you booked with a credit card, you can dispute the charge with your credit card company and likely get the money back.
There is less protection if you booked with a debit card, but you can still contact your company to see if you can get reimbursed.
If you have travel insurance, she reminded customers to read the fine print as not all of them cover this type of scenario.
Per the Department of Transportation, customers could consider filing a proof of claim in the bankruptcy proceeding to try and get a partial refund, but the claim will be considered along with all the other creditors that the airline owes money to and you may only get a small portion of your money back.
If you’re stranded, check options with other airlines that might be able to offer relief flights, fare caps or emergency fares, like they would do after a big weather event.
This is a developing story, check back for updates.
Close-up on a woman shopping at a convenience store and checking her receipt while exiting. (Hispanolistic.Getty)
(NEW YORK) — Inflation rose for a second consecutive month as the U.S.-Israeli war with Iran continued to send gasoline prices surging in April, government data on Tuesday showed. The inflation report matched economists’ expectations.
Prices rose 3.8% in April compared to a year earlier, marking an increase from a year-over-year inflation rate of 3.3% in the prior month. Annual inflation jumped to its highest level in three years, U.S. Bureau of Labor Statistics (BLS) data showed.
“I don’t think about Americans’ financial situation,” President Donald Trump told reporters Tuesday as he was departing for a high-stakes trip to China, when asked to what extent Americans’ financial situations were motivating him to make a deal with Iran.
“The most important thing, by far, is Iran cannot have a nuclear weapon,” the president further said, adding, “Every American understands.”
As recently as February, inflation stood at 2.4%, clocking in just a tick above the Federal Reserve’s target level of 2%.
The jump in prices last month owed in large part to a sharp rise in costs for products impacted by a global oil shock. Gasoline prices were 5% higher in April than March, the BLS report said. Airline fares climbed 2.8% from the previous month.
The Middle East conflict prompted the Iranian closure of the Strait of Hormuz, a maritime trading route that facilitates the transport of about one-fifth of global oil supply. The standoff prompted one of the largest oil shocks ever recorded.
The U.S. is a net exporter of petroleum, meaning the country produces more oil than it consumes. But since oil prices are set on a global market, U.S. prices move in response to swings in worldwide supply and demand.
Crude oil is the main ingredient in auto fuel, accounting for more than half of the price paid at the pump, according to the federal U.S. Energy Information Administration.
The price of an average gallon of gas stood at $4.50 as of Monday, AAA data showed – an increase of $1.52 per gallon since the war began on Feb. 28. That amounts to a roughly 50% price jump in about two-and-a-half months.
The surge in fuel prices sent costs surging for gas-dependent transportation, such as airline tickets. In March, airfare costs jumped more than 3% from a month earlier.
Within weeks, the jump in prices could spread to groceries, furniture and just about any other item delivered by diesel-fueled trucks and tankers, some analysts previously told ABC News.
The recent rise in prices has left many consumers feeling glum. In May, consumer sentiment fell to the lowest level ever recorded, according to a monthly survey conducted by the University of Michigan since 1978.
Consumer spending, which accounts for about two-thirds of U.S. economic activity, could weaken if shoppers remain pessimistic. In theory, a slowdown of spending could slow the economy.
By some measures, however, the U.S. economy has proven resilient amid the war.
Hiring slowed in April but remained solid, exceeding economists’ expectations, federal government data last week showed. The unemployment rate held steady at 4.3% in April, a low level by historic standards. Additionally, the economy grew at an annualized rate of 2% in the first quarter of 2026, marking an acceleration from 0.5% growth recorded in the previous quarter.
However, a persistent increase in consumer prices may put pressure on the Fed to raise interest rates as a means of dialing back inflation.
The Fed has opted to hold interest rates steady at three consecutive meetings since the outset of 2026. Before that, the Fed cut interest rates a quarter-point three straight times.
If the Fed moved to raise interest rates, it would hike borrowing costs for many consumer and business loans, risking an economic slowdown.
Markets forecast a roughly 70% chance of interest rates holding steady for the remainder of this year, according to the CME FedWatch Tool.
ABC News’ Karen Travers, Emily Chang and Fritz Farrow contributed to this report.
New York City Mayor Zohran Mamdani and NYC Congressional candidate Claire Valdez embrace during a primary-night watch party, June 23, 2026, in Brooklyn. (Michael M. Santiago/Getty Images)
(NEW YORK) — A trio of progressive Democrats sharply criticized billionaires on their way to victory in House primaries in New York City.
The clean sweep for candidates endorsed by far-left New York City Mayor Zohran Mamdani on Tuesday drew attention to economic populism as affordability remains a top issue for voters ahead of the midterm elections.
In Manhattan and Brooklyn’s 10th District, incumbent Rep. Dan Goldman lost in a landslide to former comptroller Brad Lander, who vowed to “put working people first – not billionaires.”
Darializa Avila Chevalier, a community organizer, defeated incumbent Rep. Adriano Espaillat in New York’s 13th District, which covers upper Manhattan and the Bronx. Claire Valdez, a one-term state assemblymember, beat Brooklyn Borough President Antonio Reynoso in the primary race for New York’s 7th District.
Valdez and Chevalier, both of whom are democratic socialists, called for a four-day work week and a pause in the construction of AI data centers, among other measures.
To be sure, center-leaning candidates won Democratic primaries on Tuesday in upstate New York and Utah. New Jersey Gov. Mikie Sherrill and Virginia Gov. Abigail Spanberger, who are both Democrats, won general elections last year with moderate campaigns touting their own plans to ease price woes.
Here’s what to know about economic proposals put forward by Lander, Chevalier and Valdez:
Tax on billionaires
All three of the victorious progressive House candidates support a tax on wealthy individuals.
Lander “strongly supports” the Ultra-Millionaire Tax Act, a bill proposed by Democratic Sen. Elizabeth Warren that would tax the net wealth of households with over $50 million, according to Lander’s website.
Lander also backs an ultra-wealth tax on individuals worth over $1 billion, as well as the Equal Tax Act, which matches tax rates for capital gains and ordinary income over $1 million.
Chevalier supports the Ultra-Millionaire Tax Act and the Equal Tax Act. Similarly, Valdez has voiced support for taxing billionaires as means of funding social programs.
The top opponents in each of the three primary races held similar positions. Both Espaillat and Goldman had signed on to the Ultra-Millionaire Tax Act and the Equal Tax Act. Reynoso said he would “fight to tax the rich – a lot.”
Proponents say wealth taxes could raise tax revenue from affluent Americans in a position to spare funds. Critics, on the other hand, warn wealthy individuals may move assets abroad or prove less likely to start businesses or other ventures.
For his part, Mamdani sought a two-percentage-point tax increase for residents making more than $1 million, which would have raised the tax rate for high earners in New York City from roughly 3.9% to 5.9%.
Instead, New York enacted a tax on second homes in New York City valued at $1 million or more.
Pause on construction of AI data centers
All three progressive House candidates back a moratorium on the construction of AI data centers.
Many of the nation’s largest companies have poured funds into the chips and data centers necessary to operate AI.
The data center projects have drawn ire from critics who say they drive up residential water and electricity bills in some areas, while offering limited job gains. Proponents of the sector point to its role in fueling economic growth and ensuring the competitiveness of U.S. tech firms.
Sen. Bernie Sanders, I-Vt., and Rep. Alexandria Ocasio-Cortez, D-N.Y, have proposed the AI Data Center Moratorium Act, which would pause the development of data centers until the federal government imposes industry regulations.
Goldman, Lander’s opponent, signed onto the AI Data Center Moratorium Act. By contrast, Espaillat – Chevalier’s opponent – has not supported the bill. Reynoso’s position on a data center moratorium could not be immediately found.
On her campaign website, Valdez said she would “fight to hold major technology corporations accountable, protect our workforce from the harms of AI, and ensure that new technologies benefit communities, not just corporate executives.”
Four-day work week
Chevalier and Valdez support shifting from a standard workweek of 40 hours spread across five days to one lasting 32 hours across four days.
Such an approach, Valdez says, would reclaim the “economic gains of automation for workers.”
Spain, Iceland and South Africa are among the nations that have implemented a trial of the four-day workweek for select companies and workers.
In California and the U.S. House, lawmakers have introduced bills that would set the standard workweek at 32 hours.
The Thirty-Two Hour Workweek Act, introduced in the U.S. House in March 2023, garnered support from eight members. Neither Goldman nor Espaillat was among the backers.
Reynoso’s position on a four-day workweek could not be immediately found, though last month he spoke in support of unionized Kickstart employees seeking a four-day workweek as part of their labor contract.
Some experts previously told ABC News that a combination of escalating market pressure and legislative activity could ultimately bring a nationwide four-day workweek standard; others said such an outcome would prove nearly impossible, at least anytime soon.
Labor law reform
The share of unionized workers has fallen nationwide in recent decades. All three of the New York City progressives say they want to reverse that.
Lander, Valdez and Chevalier each support the PRO Act, a labor law reform measure with strong backing among U.S. labor unions.
The legislation would ease the path toward forming unions and winning labor contracts. The latest version of the bill, known as the Richard L. Trumka Protecting the Right to Organize Act, boasts the support of 215 House members, including at least one Republican.
Both Goldman and Espaillat signed onto the PRO Act. Reynoso, meanwhile, vowed to “champion the PRO Act.”
On her campaign website, Chevalier calls for passage of the PRO Act, so that “everyone who wants a union can form one.”
