The American labor market reportedly added 147,000 jobs in June, signaling continued—though moderating—growth as the economy adjusts to high interest rates and persistent inflation concerns.
The unemployment rate ticked down to 4.1 percent, the lowest in over a year, offering a cautiously optimistic signal to policymakers at the Federal Reserve.
The report surpassed expectations from economists, who had forecast a more modest increase of around 111,000 jobs.
Though the headline numbers remain solid, revisions to previous months showed a combined 111,000 jobs were trimmed from April and May totals, suggesting momentum may be slowing more than it initially appeared.
Most of the hiring came from public-sector and healthcare jobs, with state and local governments continuing to boost education payrolls.
Private-sector growth was less robust, and long-term unemployment nudged upward, hinting at a labor market that may be cooling beneath the surface.
Wages rose modestly, with average hourly earnings increasing 0.2 percent over the month and 3.7 percent from a year earlier.
That pace is slower than in previous cycles and may ease pressure on the Federal Reserve, which has kept rates elevated in its campaign to tame inflation. The labor force participation rate declined slightly to 62.3 percent.
Despite the broad resilience of the labor market, cracks are beginning to show.
A growing share of unemployed workers have remained without jobs for more than 15 weeks, and job openings continue to shrink, particularly in professional services and manufacturing. Hiring in the federal government declined for the fifth consecutive month.
The data arrives as the Fed weighs whether to begin lowering rates later this year. With inflation largely under control and wage pressures easing, some officials may see this as an opportunity to loosen policy without reigniting price growth.
Commentators at CNN seemed unable to believe their own eyes when reporting on the news:
🚨 LMAO! Experts IN SHAMBLES over today's job's report, CNN is shocked
"147K jobs! Well ahead of expectations! … we were expecting a slowdown, we did not get that!"
“Every single time we expect it to run out of steam, it just keeps going and going!"pic.twitter.com/5mGSeTA5kx
— Eric Daugherty (@EricLDaugh) July 3, 2025
Financial markets quickly adjusted to the numbers, with expectations for a July rate cut receding and attention turning to a possible adjustment in September. Bond yields rose, and stocks ended the day mixed.
The White House pointed to the report as evidence that the economy remains on stable footing, while economists described the labor market as resilient but slowing—a sign that the extraordinary expansion of the past two years may be giving way to a more sustainable path.
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