The U.S. economy added 147,000 jobs in June, exceeding expectations, and the unemployment rate fell slightly to 4.1%, according to new data from the Bureau of Labor Statistics. This brings the three-month average to 150,000 jobs per month, showing continued, though uneven, labor market strength.
Job growth was concentrated in health care, hospitality, and local government. However, private sector gains outside of health and education were minimal—just 23,000—suggesting that overall hiring remains weak. Economists point to rising trade tensions, tighter monetary policy, and concerns over Trump’s fluctuating tariffs as key factors slowing job growth.
Wage growth also fell short, with average hourly pay rising just 0.2% last month. Labor force participation dipped, and the unemployment rate for Black workers jumped to 6.8%, the highest since early 2022.
Layoffs remain low, with new jobless claims dropping to 233,000. But people are struggling to find new work: long-term unemployment is rising, and nearly a quarter of job seekers have been unemployed for over six months.
While businesses remain cautious about hiring, most are holding onto their current employees. The labor market continues to grow, but signs of strain—especially in specific groups and industries—are beginning to show.
