The U.S. labor market outperformed expectations in June, adding 147,000 jobs and pushing the unemployment rate down to 4.1%, according to figures released Thursday by the Department of Labor. The stronger-than-expected report came amid growing concerns that President Donald Trump’s tariff policies would slow hiring and economic growth.
Economists had forecast a gain of just 110,000 jobs, with the jobless rate edging up to 4.3%.
In addition to the solid June figures, the Labor Department revised April and May’s job numbers upward. April’s total was increased from 147,000 to 158,000, and May’s figure rose by 5,000 to 144,000 — a combined net gain of 16,000 jobs over the two months.
Wages Keep Climbing
Wage growth continued its steady rise. Average hourly earnings increased by 0.2% in June and are now up 3.7% year-over-year — outpacing inflation. Among private-sector production and nonsupervisory workers, average hourly pay grew by 0.3%.
Sector Breakdown
The private sector added 74,000 jobs, while public-sector hiring accounted for 73,000 — a notable increase driven largely by state and local government payrolls. Meanwhile, the federal government shed 7,000 jobs in June, continuing a downward trend.
In the goods-producing industries:
- Construction added 15,000 jobs
- Manufacturing lost 7,000 jobs
In the services sector, which led overall growth:
- Healthcare and social assistance added 58,600 jobs
- Leisure and hospitality gained 20,000
- Smaller increases were seen in retail trade, financial services, IT, and utilities
Despite the headline strength, private-sector hiring was somewhat muted when excluding jobs tied to government-supported sectors like education, healthcare, and social services.
