Employers across the United States added 147,000 jobs in June, demonstrating continued resilience in the labor market despite a broader economic slowdown. According to the Labor Department, this figure aligns closely with the average monthly gain of 146,000 jobs over the past year.
The job growth recorded in June exceeded expectations. Economists surveyed by FactSet had predicted an increase of 115,000 payroll jobs, but actual gains surpassed this forecast significantly.
The national unemployment rate dropped to 4.1% in June, down from 4.2% in May, marking the lowest level since February. This rate also came in below the 4.3% forecast by economists, according to FactSet.
The June employment data indicates that the labor market remains robust despite uncertainties surrounding U.S. trade and fiscal policies. Employers have continued to hire at a steady pace.
Government employment saw the largest increase in June, with 73,000 new jobs added, primarily driven by gains in state and local government education sectors. Meanwhile, the federal workforce continued to shrink, losing 7,000 jobs in June. Earlier this year, significant reductions in federal jobs by the Department of Government Efficiency (DOGE) have severely impacted several key agencies. Outplacement firm Challenger, Gray & Christmas reported that DOGE-related layoffs have accounted for nearly 287,000 job cuts so far this year.
The healthcare sector added 39,000 jobs during the month.
The Labor Department also revised its figures for April and May upward by a combined 16,000, further indicating that the job market remains on solid footing.
Despite the current strength of the labor market, economists anticipate a slowdown in growth during the second half of the year. Federal Reserve Chair Jerome Powell has noted that tariffs could begin to hinder economic activity and push inflation higher this summer. At a recent gathering of central bankers in Portugal, Powell explained that the Fed has delayed lowering interest rates this year due to tariffs imposed under President Trump’s administration.
Economists have emphasized that the labor market continues to hold up despite significant economic uncertainty.
“Today’s stronger jobs report confirms a still resilient U.S. labor market, defying, at least for now, the signs of weakness seen in some leading indicators,” said Simon Dangoor, head of fixed income macro strategies at Goldman Sachs Asset Management, in a research note.
The sustained level of job growth suggests that the Federal Reserve will likely delay rate cuts at its upcoming meeting this month, according to experts. At its most recent meeting, the central bank projected two rate cuts by year-end, although some economists predict only one.
Nancy Vanden Houten, lead U.S. economist at Oxford Economics, believes that inflation driven by tariffs is likely to peak by the fourth quarter, potentially allowing the Fed to lower rates in December to stimulate economic growth.
“While there were some elements of softness beneath the better-than-expected headlines, the June employment report was strong enough to allow the Federal Reserve to keep policy on hold as it monitors the impact of tariffs on inflation,” she noted in a research note.
Bret Kenwell, an investment analyst at eToro, stated in an email that the latest job figures could lead to a relief rally for U.S. stocks. Stock markets were slightly up after the opening bell. Trading hours were shortened today, and markets will remain closed on Friday due to the July 4 holiday.
— news from CBS News
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Employers added 147,000 jobs in June as U.S. labor market continues to defy expectations
Employers across the U.S. added 147,000 jobs in June, with the labor market remaining resilient despite slowing economic growth this year. That figure is in line with the average monthly gain of 146,000 over the last year, according to the Labor Department.
The numbers
Job growth was stronger than expected in June. Payroll gains sailed past the 115,000 predicted by economists polled by financial data firm FactSet.
The nation ‘s unemployment rate fell to 4.1%, down from 4.2% in May and the lowest since February. The jobless rate came in below economist forecasts of 4.3%, according to FactSet.
What it means
June ‘s employment data shows that the labor market remains solid even amid significant uncertainty over U.S. trade and fiscal policy. The upshot is that employers continued to add jobs at a steady pace.
Government employment rose the most in June with 73,000 jobs added, driven by gains in the state and local government education sectors. The federal workforce continues to shed jobs, with 7,000 lost in June. Massive cuts in federal jobs by the Department of Government Efficiency, or DOGE, earlier this year have gutted several key agencies. Outplacement firm Challenger, Gray & Christmas says DOGE layoffs have accounted for nearly 287,000 cuts so far this year.
The health care sector added 39,000 jobs.
The Labor Department also revised up its numbers for April and May by a collective 16,000, a further indication the job market remains on solid ground.
While the labor market remains sturdy, economists expect growth to slow in the second half of the year. Federal Chair Jerome Powell has said tariffs could start to hobble economic activity and drive up inflation this summer. At a gathering of central bankers in Portugal earlier this week, Powell said the Fed has held off lowering interest rates this year because of President Trump ‘s tariffs.
What the experts are saying
Economists underlined that the labor market continues to persevere despite considerable economic uncertainty.
“Today ‘s stronger jobs report confirms a still resilient U.S. labor market, defying, at least for now, the signs of weakness seen in some leading indicators,” Simon Dangoor, head of fixed income macro strategies at Goldman Sachs Asset Management, said in a research note.
The healthy level of job growth likely means the Fed will hold off cutting rates at its meeting this month, experts say. At its most recent meeting, the central bank penciled in two rate cuts by year-end, although some economists predict just one.
Nancy Vanden Houten, lead U.S. economist at Oxford Economics, thinks U.S. inflation stemming from tariffs is likely to peak by the fourth quarter, giving the Fed room to lower rates in December to propel economic growth.
“While there were some elements of softness beneath the better-than-expected headlines, the June employment report was strong enough to allow the Federal Reserve to keep policy on hold as it monitors the impact of tariffs on inflation,” she said in a research note.
Bret Kenwell, an investment analyst at eToro, said in an email that the latest job numbers could lead to a relief rally for U.S. stocks. Stocks were up slightly after the opening bell. The markets close early today and will not be open on Friday due to the July 4 holiday.