Tuesday, July 07, 2026

Five Takeaways From the US June Jobs Report


 July 7, 2026

Photo by Simon Abrams

The June jobs report gave a decent picture on jobs growth, even if there were somewhat fewer jobs than most analysts had predicted. At 57,000, the economy is generating enough jobs to keep pace with the growth of the labor force. However, there were other aspects to the report that were somewhat concerning, most notably the weak wage growth. Here are my big five takeaways from the report.

+ Wage growth is slowing and not keeping pace with inflation;

+ There is virtually no job growth outside of the health care and social assistance sectors;

+ Women are getting most of the new jobs;

+ Prime age (ages 25-54) employment-to-population ratios seems to have fallen a lot;

+ There is zero evidence of an AI-driven productivity boom.

I’ll take these in turn.

Wage Growth Has Slowed Substantially from Its 2023-24 Pace

The average hourly wage increased 3.5% over the year from June 2025 to June 2026. This compares to a rate of over 4.0% in 2023 and 2024. This sort of slowing is striking given that the unemployment rate remains quite low by historical standards.

It’s also striking to see that wage growth has not accelerated at all in the wake of the recent jump in inflation. That is good news from the standpoint of those worried about a 1970s-type wage-price spiral, but it is bad news for those concerned that workers’ pay is not keeping pace with prices. With year-over-year inflation over 4.0% in the most recent data, wages are clearly falling behind. The sharp drop in gas prices over the last month will help, but even incorporating this decline, workers are at best just treading water.

One of the good stories of the Biden years was that the lowest-paid workers had the largest increase in wages. There is little evidence that this is currently the case. The average hourly wage for production and non-supervisory workers, a group that excludes most higher-paid workers, has risen just 3.4% over the last year.

However, in the low-paid restaurant sector, wages for production workers have risen 4.6% over the last year. It is possible that this increased wage growth could be in part attributable to a worker shortage resulting from large-scale deportations, but we will need more evidence on this issue.

Health Care and Social Assistance are Providing Almost all the New Jobs

Over the last year, the economy added 506,000 jobs. The health care and social assistance sectors added 629,000 jobs. Even pulling out the federal government, which lost 258,000 jobs, health care and social assistance still accounted for more than 82% of the job growth over the last year.

Every other sector shows very limited job growth. Local government employment is up 90,000, year-over-year, an average of 7,500 a month. State government lost 47,000 jobs, offsetting more than half of this growth. Professional and technical services added 62,000 jobs, an average of 5,000 a month. Retail added just 24,000 jobs.

The goods sector is not showing much growth. Construction added 64,000 jobs, also a bit more than 5,000 a month. Manufacturing lost 38,000 jobs over the last year, although employment has inched up in the last four months. Any hopes for a boom in the oil sector collapsed with the June price drop. Employment in oil and gas (including support activities) is down 7,100, year over year, while coal mining jobs are down by 700.

Restaurants are the only other sector showing strong job growth, with employment up 128,000, about 1.0%, over the last year. That increase is hard to understand since real sales are actually down 0.5% over the last year.

Anyhow, there is very little job growth outside of the health care and social assistance sectors. The strong growth in this sector is not surprising, given the aging of the baby boomers, but it is striking there is so little growth anywhere else.

Women Are Getting Most of the New Jobs

Women’s share of payroll employment hit 50.1% in June, the highest ever. This is directly connected to the fact that most of the new jobs have been in health care and social assistance. Women account for 76.6% of the workers in this sector. As long as job growth in this sector outpaces job growth in the rest of the economy, women’s share of total employment will increase.

Prime Age EPOPs Fell, Especially for Men

There was an extraordinary one-month drop in the EPOPs for prime-age workers. The overall EPOP for prime-age workers fell 0.6PP to 80.2%, the lowest since December 2022. The EPOP for prime-age men (ages 25-54) dropped 0.9 percentage points to 85.7%, the lowest level since June of 2022. This sort of one-month drop is extraordinary. The monthly data are erratic, but a reported decline of this size almost certainly reflects something real in the labor market. There was also a smaller 0.3PP drop in the EPOP for prime age women to 74.9%.

It is likely that noise accounted for much of this drop, but part is likely real. That is a bit hard to understand, given other data in the report that was reasonably positive. Look for this decline to be partly reversed in future months, but any drop is cause for concern. It also is worth noting the contrast to last year, when disadvantaged groups like young and Black workers were being hard hit, while prime-age workers and white workers were largely unaffected. The June data seem to reverse this picture.

The AI Productivity Boom Is Still Invisible

The index of aggregate hours grew at a 1.3% rate in the quarter. With GDP growth likely coming in close to 2.0%, we are looking at productivity growth around 1.0%. That follows growth of 0.3% in the first quarter and 1.6% in the fourth quarter of 2025. There is zero evidence of any sort of productivity uptick in these data.

Perhaps we just need to wait a bit longer, but insofar as hopes for AI are driving the stock boom, we are way behind the curve. At the point where the stock market was hitting its peaks in 2000 (comparable to the current price-to-earnings ratio for the market as a whole), productivity growth had been averaging close to 2.8% for more than four years. We would need rates of productivity growth in the neighborhood of 4.0% to generate the sort of profits needed to make sense of current market levels. (The market crashed in 2000 for trivia buffs.)

It is surprising that the continuing weakness of productivity doesn’t bother stock investors more. It is as though they are completely clueless about the relationship between the stock market and the economy, which may be true.

This first appeared on Dean Baker’s Beat the Press blog.

Dean Baker is the senior economist at the Center for Economic and Policy Research in Washington, DC. 

After Tens of Billions in Stock Buybacks, Microsoft Announces Mass Layoff of 4,800 Workers

“Seeing such strong numbers coupled with the mass layoffs at Xbox is not sitting right with many,” wrote one tech journalist.


People walk in front of Microsoft store in Manhattan on March 31, 2026, in New York City. Microsoft is facing a significant market downturn during the first quarter of 2026.
(Photo by Zamek/VIEWpress)

Stephen Prager
Jul 06, 2026
COMMON DREAMS

President Donald Trump has touted his massive corporate tax breaks in 2017 and 2025 not just as handouts to the rich, but as boons for their employees, who could expect to see rising wages and job growth in the coming years.

But one of the policy’s biggest beneficiaries, Microsoft, just announced it was laying off thousands of employees in a move described as “cost-cutting,” even though the company has spent tens of billions of dollars buying back its own stock.

When Trump’s 2017 tax law reduced the corporate tax rate from 35% to 21%, Americans for Tax Fairness estimated that the company was saving about $16.5 billion per year.

The One Big Beautiful Bill Act, passed last July, rewrote rules to benefit companies investing in artificial intelligence by allowing them to deduct the cost of data centers and other equipment up front rather than spreading the deductions out over time, and introduced new deductions for research and development expenses.

For Microsoft, which pledged roughly $80 billion globally toward AI data center investment last year, that could translate to up to $16.8 billion in near-term federal tax savings.

The added windfall has been great for Microsoft shareholders. From 2018-25, the company returned roughly $139.5 billion to shareholders through stock buybacks since the Trump-GOP tax cut took effect, according to shareholder reports.

In the first nine months of fiscal year 2026, the first since the new tax breaks went into effect, the company bought back another $13.3 billion, an acceleration from the previous year, according to a form filed with the US Securities and Exchange Commission.

At the same time as the company is ramping up AI investment, however, it is laying off employees.

On Monday, the company announced that it was shedding roughly 2% of its global workforce, eliminating about 4,800 jobs—mostly in its Xbox division—as it allocates more money and resources to the AI arms race.

They are among the more than 20,000 Microsoft employees who have been shown the door since 2025. Additionally, thousands more employees took voluntary buyouts this spring.

Microsoft executive Amy Coleman attributed the cuts to a changing technological landscape.

“Our customers’ needs are shifting, the business models that serve them are shifting, and that means the work itself—what we do, where we focus, and how we’re organized—has to transform too,” she said. “Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it.”

She also stressed that workers were “not being replaced by AI.”

But Eddie Makuch, a writer at GameSpot, noted that the company has been doing terrifically, and despite falling share prices over the past year, remains “the No. 4 biggest company on Earth with a market cap of more than $2.8 trillion.”

“Microsoft stockholders might not have been happy with the company’s share price falling, but for the past quarter alone, Microsoft paid out $10.2 billion to shareholders via dividends and share repurchases,” he wrote. “These are signs of strength and health for Microsoft. Xbox is a very small piece of Microsoft’s overall business, but seeing such strong numbers coupled with the mass layoffs at Xbox is not sitting right with many.”

Inside The Case Against the ‘Michigan 8’: Palestine Activism Recast as Antisemitic Terror


July 6, 2026

Property damage to a Rolls-Royce facility in Novi, Michigan, which had phrases such as “MTU ARMS GENOCIDE” and “FREE PALESTINE” painted on its exterior. Rolls-Royce produces parts for Israeli army vehicles. MTU is Rolls-Royce’s German subsidiary, which makes the engines for the Israeli army’s Merkava tanks. (Photo via US DOJ) Property damage to a Rolls-Royce facility in Novi, Michigan, which had phrases such as “MTU ARMS GENOCIDE” and “FREE PALESTINE” painted on its exterior. Rolls-Royce produces parts for Israeli army vehicles. MTU is Rolls-Royce’s German subsidiary, which makes the engines for the Israeli army’s Merkava tanks. (Photo via US DOJ)

In the early morning hours of June 10, 2026, the FBI conducted raids against individuals involved in Palestine solidarity activism at the University of Michigan. With help from local and state police departments, including the University of Michigan Police, the raids unfolded simultaneously in Michigan, Illinois, and Wisconsin. In Ypsilanti, MI, agents in military gear rolled into a neighborhood in an armored vehicle, with guns drawn, terrorizing families and neighbors. A similar home raid took place in Chicago. In total, seven of the eight accused individuals were arrested (one was out of the country). The case is now known as the Michigan Eight.

The Justice Department indicted the eight defendants – five of whom are current or former students at the University of Michigan, and one of whom was a University employee – on multiple counts of severe charges, including “Conspiracy to Transmit Threats in Interstate and Foreign Commerce.” The defendants, all in their twenties, now potentially face decades in prison.

The main actions described in the indictment boil down to property damage, directed against the offices or homes of University of Michigan officials, the facilities of Rolls-Royce (which makes parts for Israeli army tanks) and Maersk (which ships military equipment to Israel), and the building of the Jewish Federation of Detroit (a major pro-Israel organization, as we will see). No person has been physically harmed by these actions.

Yet the indictment paints these actions as a form of antisemitic terrorism, drawing on the FBI’s extensive digital surveillance of the defendants. This narrative was crafted by the masters of deception – Trump’s Justice Department – and it does not stand up to scrutiny. While we do not know who was behind the actions (the defendants have pleaded not guilty), it is clear the actions have nothing to do with anti-Jewish racism or terrorism.

The goal of the wildly exaggerated indictment is to repress Palestine solidarity activism. The U.S. government plans to make an example of the Michigan Eight in order to deter attempts to disrupt institutions complicit in the genocide. It is part of a wider push to severely punish property damage and reframe the Palestine solidarity movement as “terrorism.” We must resist this criminalization and stand with the Michigan Eight.

FBI raid on the home of some of the Michigan Eight defendants in Ypsilanti, MI, June 10, 2026. Michigan State Police and University of Michigan Police participated in the raid. The same house had been previously raided by the FBI in April 2025, as part of the crackdown on the campus Palestine solidarity movement, where agents tore the door open with a battering ram.

Spinning a tale of antisemitic terrorism

The Justice Department presents the defendants as a terrorist group with an antisemitic agenda. Both characterizations are unfounded. Indeed, the defendants were not formally charged with terrorism, since the evidence for that is nonexistent. The Justice Department instead tried to create the appearance of terrorism by linking the defendants to Hamas (which the U.S. government considers a “terrorist organization,” not a legitimate resistance movement). Likewise, the DOJ’s narrative performs a slight of hand in labelling as antisemitic alleged acts and words which in fact reflect opposition to the policies and violence of the state of Israel.

In the brief arguing why the defendants should be detained, the Justice Department states that “the defendants are ardent supporters of Hamas and utilize Hamas’ messaging to threaten their victims.” Using data allegedly obtained from defendants’ devices, the brief claims the defendants “traded and possessed various Hamas killing videos.” The brief also presents a photo of one of the defendants with red paint on her hands, apparently taken in the defendant’s garage, and makes the absurd claim that it was just like “the infamous photo from the Ramallah Lynching of 2000, where two Israeli reserve soldiers were murdered and mutilated during the Second Intifada.”

Property damage to a Rolls-Royce facility in Novi, Michigan, which had phrases such as “MTU ARMS GENOCIDE” and “FREE PALESTINE” painted on its exterior. Rolls-Royce produces parts for Israeli army vehicles. MTU is Rolls-Royce’s German subsidiary, which makes the engines for the Israeli army’s Merkava tanks. (Source: US Justice Department)

In a June 12 bond hearing in Detroit, U.S. Attorney Maggie Smith stated that the defendants share “an extreme violent view directly tied to terrorism.” She spent much time in the hearing trying to argue that Hamas is an antisemitic terrorist group and that, by association, so are the defendants. Smith repeatedly stated that Hamas’s attack on October 7, 2023 was an attack not only against Israel or Israelis but on “Jews” generally. Smith ended her opening arguments by reading a “victim statement” from the Jewish Federation of Detroit, meant to prove the “antisemitism” of the alleged actions. Phrases such as “Free Palestine” had been painted on the Jewish Federation’s building, along with an inverted red triangle. The Jewish Federation claimed that the action against its building was an attack on “Jewish communal life” and that such actions constitute “acts of hatred toward Jews.” The Federation added that the use of the inverted red triangle was a reminder of “Hamas and its targeting of Jews” on October 7.

The fabrication of antisemitism appeared to work. Addressing one of the defendants in the June 12 hearing, Michigan District Judge Anthony Patti said he was appalled by the “antisemitic” nature of the alleged actions. He said he is “not immune” to the issue because he “grew up in a Jewish neighborhood” and “has Jewish friends,” adding that the Jews have been persecuted enough and that six million were murdered in WWII. Corporate media also boosted the narrative of antisemitism. The Detroit Free Press incorrectly reported that Jewish Federation’s building in Detroit “was targeted with antisemitic graffiti” and that the actions included the spreading of “antisemitic messages,” while the Detroit News ran a story about the University of Michigan “terror suspects” (even though no terrorism charge had been made).

Yet there is nothing “antisemitic” about the actions described in the indictment. For example, the graffiti on the Jewish Federation of Detroit’s building was in protest of Israel’s genocide, which is enabled by support from U.S. institutions – including the Jewish Federation. The indictment, the statements made during the hearing, and media accounts erroneously conflate criticism of Israel with antisemitism.

The Jewish Federation’s website offers “talking points” for defending Israel and discussing October 7. It repeats the widely debunked claims that Palestinian fighters beheaded babies, “killed babies in ovens,” and “raped women so violently that they broke the pelvic bones of their victims” – fabrications which have been used as justification for genocide and to deflect from and justify the documented violence carried out by Israel in its war on Gaza.

Screenshot from the homepage of the Jewish Federation of Detroit, a staunchly Zionist organization that fundraises for Israel and for many Zionist groups. The Jewish Federation distributed over $66.6 million dollars to various nonprofits in fiscal year 2023, including Friends of the IDF and numerous other Zionist organizations.

The Jewish Federation also materially supports Israel’s army. It boasted that since October 7, 2023, it worked with other Jewish Federations to raise $295,855 for Israeli soldiers, which “includes the purchase and delivery of protective eyewear, boots, sleeping bags and other supplies.” The Jewish Federation also donates tens of millions each year to other Zionist nonprofit organizations. In 2023, it gave $16,150 to Friends of the Israel Defense Forces, a nonprofit that sponsors Israeli soldiers and defends their actions. It also donated $10,000 to the Jewish National Fund, which for over a century has played a central role in dispossessing Palestinians of land. That year, the Jewish Federation also gave $334,260 to the Birthright Israel Foundation, which organizes propaganda trips designed to make young American Jews into fierce Zionists.

Depicting the defendants as foreign agents and criminalizing their beliefs

The Justice Department also advanced the narrative of terrorism by presenting the Michigan Eight defendants as brainwashed foreign agents, utilizing racist tropes.

Defendants who had travelled internationally were deemed by U.S. attorneys as suspicious. Their travel history was taken as evidence of “extensive international ties”; if the defendants had family in China or India, even worse. In the June 12 court hearing, U.S. Attorney Maggie Smith said that while one Chinese American defendant doesn’t have a Chinese passport, he was able to live in China for many years, and concluded that “even if he doesn’t have dual citizenship, he certainly is welcome to be in that country.” This was somehow supposed to justify denying him bail. In the brief, the government also made the absurd assertion that because the defendant had allegedly subscribed to digital media channels of Palestinian resistance groups, he was “receiving almost a constant flow of American and Jewish hate.”

The Justice Department also argued that the defendants’ beliefs are enough to make them a “danger to the community.” Regarding one defendant, the government’s brief claims that “defendant’s steadfast belief that she is supporting a righteous cause and has not done anything wrong is exactly what makes her dangerous.” The brief argues that she should be detained because “no condition or combination of conditions will assure her presence in a court she believes is corrupt, and no condition or combination of conditions will assure the safety of the community that she believes is ‘fascist,’ ‘imperialist,’ and ‘colonialist.’” In other words, having anti-fascist, anti-imperialist, and anti-colonial views is, for the Justice Department, already grounds for being thrown in jail.

So far, the Justice Department’s rhetoric has only partially worked. Judges in Michigan and Illinois have agreed to release the defendants on $10,000 unsecured bond, meaning the courts probably did not accept the state’s assertion that these are dangerous “terrorists” who pose a risk to the community. But the defendants were released on unjust and highly restrictive conditions. The defendants are now subjected to continuous GPS monitoring (for which they have to cover the costs) and confined to the state district in which they live. Some defendants were also given “home detention,” meaning they cannot leave their place of residence except for court-approved purposes, or to attend school or work, and are under a curfew of 8am–8pm. Defendants also had to consent to have their DNA samples collected if asked by the court.

A distraction from the real sources of violence

The presentation of the Michigan Eight as terrorists is intended to distract from the great violence the University of Michigan (UM) and state agencies have used against the Palestine solidarity movement.

University of Michigan police have beaten, pepper sprayed, and groped Palestine solidarity protesters on campus. When UM police violently disbanded the Gaza solidarity encampment in May 2024, at least two protesters had to be hospitalized due to pepper spray exposure. UM has infamously hired private undercover investigators to surveil and harass student activists (and is now facing a lawsuit as a result). There were several instances of UM police investigators making home visits to student activists in order to intimidate them and get information about other individuals in the movement. Public spaces on campus have also been increasingly surveilled and restricted, monitored by police and private security firms.

Top: University of Michigan police pepper spraying a crowd at the Gaza solidarity encampment on campus, May 21, 2024. Bottom: Michigan State Police officer pushing his bicycle into a crowd at a protest outside the University of Michigan Museum of Art, May 3, 2024. UM Regents Sarah Hubbard, Jordan Acker, and Paul Brown were in the museum for an event that day. Protest broke out after the regents refused to come outside to talk with students about divestment. (Photos via TAHRIR Coalition)

The University also brought in heavier state power to try to criminalize the campus movement. UM Board of Regents members Jordan Acker and Mark Bernstein – both major supporters of Israel – recruited their close ally, Michigan State Attorney General Dana Nessel, to pursue felony charges against some encampment participants. Nessel eventually had to drop the charges because they could not be substantiated, at which point UM used internal disciplinary procedures to punish the students. UM police also issued campus bans to tens of individuals who had attended protests. The case against the Michigan Eight is an escalation of this longstanding program of repression.

University of Michigan Deputy Chief of Police Melissa Overton pepper spraying into a crowd (without looking) at an October 7, 2024 rally on campus. (Photo via TAHRIR Coalition)

The case against the Michigan Eight is ultimately about crushing solidarity in all its forms. The U.S. government seeks to criminalize any speech that is supportive of the Palestinian resistance, while trying to break the bonds of solidarity that people in the movement here have created with each other. The Justice Department also wants to send a message: if you damage property to disrupt genocide, you may face decades in prison.

This crackdown is not limited to the U.S. On the day of the hearing for the Michigan Eight, June 12, 2026, a London judge sentenced Palestine Action activists to several years in prison under “terrorism” charges for destroying equipment in a factory that services Elbit, Israel’s largest weapons developer. We must resist this growing wave of criminalization and keep our solidarities strong.

Ways to Support the Michigan Eight 

– Donate to the Michigan Eight legal fund.

– For University of Michigan affiliates, sign the open letter of solidarity.

This piece first appeared on Mondoweiss.

Yarden Azoulay Katz teaches at the University of Michigan and is the author of L’Shleimut: A Jewish Radical Tradition Against Capitalist Science and Medicine (2026) and Artificial Whiteness: Politics and Ideology in Artificial Intelligence (2020). Stephen M. Ward teaches at the University of Michigan and is the author of In Love and Struggle: The Revolutionary Lives of James and Grace Lee Boggs (2016) and the editor of Pages From a Black Radical’s Notebook: A James Boggs Reader (2011).