Despite President Donald Trump’s policies’ policies and the uncertainty surrounding the economy, the US economy added 147, 000 jobs in June, beating analyst expectations.
On Thursday, the Labor Department released the figures. The unemployment rate decreased from May by 0.1 percentage points to 4.1 percent, according to the data, which was released a day early because the Independence Day holiday falls on Friday. Last month, the average workweek was shorter, suggesting that as a result of weakening the economy’s prevailing economic conditions, businesses were probably cutting back on their hours.
The state and local government positions were the most successful, adding 73, 000 new positions in June. State governments added 47, 000 jobs, led by 40, 000 in education. 23 000 more local government jobs were created. The federal level is still experiencing a decline, losing 7, 000 jobs, or 69, 000 of those jobs since January.
The healthcare industry added 39, 000 jobs to the government sector, which gained. 19 000 new jobs were added to the field of social assistance.
According to Sarah House, a senior economist with Wells Fargo, “it was a good report on the internet,” the Associated Press reported.
However, when you dig deeper, it appears to be another jobs report that isn’t as good as it appears. ‘
Little has changed in the private sector in terms of hiring, despite Trump’s tariffs and immigration policies, including those in the fields of construction, mining, oil and gas extraction, wholesale and retail trade, transportation, financial services, professional and business services, and leisure and hospitality.
Businesses have become confused and hesitant to make hiring and investment decisions as a result of Trump’s constant changes in tariff policy, which include announcing and suspending import taxes before introducing new ones.
Although layoffs have begun, they are still relatively low. According to the Labor Department’s weekly report on jobless claims, which was released on Thursday, claims decreased by 4, 000 to 233, 000. 33, 000 jobs lost in total, according to the ADP private payroll report released on Wednesday.
Job losses were caused by “though layoffs continue to be uncommon,” according to Nela Richardson, ADP’s chief economist. “Though layoffs continue to be rare, a reluctance to hire and a reluctance to replace departing workers.”
Average hourly wages increased by 0.2% from May to 3.7% from the same period last year, according to Thursday’s jobs report.
The inflation target of 2 percent is being met as the year-over-year rate approaches the 3.5% average.
Jobs numbers have outperformed market expectations for the fourth month in a row, according to White House Press Secretary Karoline Leavitt, who released a statement.
She cited Republican legislation to lower taxes, food assistance, and the Medicaid health insurance program as examples of how the economy is expanding and that the implementation of the One, Big, Beautiful Bill will help.
Growth slowdown
The US job market has cooled significantly over the past year despite the White House’s portrayal. Employers added 130, 000 jobs on average each month this year, down from 186, 000 on average in 2024. The US economy added 400, 000 jobs on average every month between 2021 and 2023 as a result of the COVID-19 pandemic.
The US economy is contracting, according to other data. The US economy contracted by 0.5% in the first quarter, according to a report released last week from the Department of Commerce.
The number of people seeking and working for a living decreased by 130, 000 last month from 625, 000 in May. The fear of Trump’s immigration deportations would have forced foreign workers to leave the workforce, according to economists.
According to the Labor Department, there were 637, 000 more employees last month who said they no longer believed there were jobs available for them.
In the second half of the year, Wells Fargo anticipated that monthly employment growth would be below 100,000. We’re anticipating a much slower rate of job growth, according to House. There is still a lot of uncertainty regarding the policy.
