An economist has raised concerns about the state of the U.S.labor market following the release of a new Department of Labor report showing weaker-than-expected job growth in June.

According to the report, the economy added only about 57,000 jobs during the month, a figure that has prompted renewed discussion about whether recent optimism about economic performance is justified.

Justin Wolfers, an economics and public policy professor at the University of Michigan, said the latest data suggests the economy may not be as strong as earlier months indicated.Wolfers noted that while prior reports showed stronger job gains that generated enthusiasm, the newest figures point to a cooling trend.He described the economy as neither collapsing nor booming, but rather “treading water,” suggesting modest stability without strong momentum.He cautioned against overconfidence based on short-term fluctuations and emphasized the need for continued monitoring of economic indicators.The report also highlighted uneven trends across sectors.Wolfers pointed to a decline in hiring within leisure and hospitality, a sector typically sensitive to tourism and major events.He noted that this decline is occurring even as several U.S.cities host major international events such as the World Cup, which would normally be expected to boost employment in that industry.Additionally, he argued that most sectors outside of healthcare appeared to show signs of contraction or weakening hiring activity.

Overall, the analysis suggests that while the labor market is still expanding, the pace of job creation has slowed, raising questions about the underlying strength of economic growth and whether recent positive trends can be sustained.