U.S. economy adds 147,000 jobs in June, defying forecasts as unemployment falls to 4.1%

By lauraharris // 2025-07-11

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The U.S. economy added 147,000 jobs in June, beating forecasts of 110,000 and pushing unemployment down to 4.1 percent. Revisions also boosted April and May figures.
Average hourly earnings rose 0.2 percent in June, bringing annual wage growth to 3.7 percent, outpacing inflation and marking strong real wage gains, especially among non-supervisory workers.
Job growth was nearly split between the private (74,000) and public (73,000) sectors, though federal employment declined by 7,000 due to ongoing workforce cuts.
Healthcare and leisure led job gains, while manufacturing and professional services saw losses. Construction added 15,000 jobs, reflecting steady infrastructure demand.
Economists are split on whether the Federal Reserve will hold rates or cut them. While some cite strong labor data, others point to tariff uncertainty and slowing private hiring as reasons for potential easing.

A newly released report from the Department of Labor has shown a renewed strength of the U.S. labor market in June, adding 147,000 jobs and pushing the unemployment rate down to 4.1 percent. The results, which were released on July 3, exceeded economists' expectations and offered fresh evidence of economic resilience amid evolving policy directions under the administration of President Donald Trump. Forecasters had anticipated a more modest gain of 110,000 jobs for the month, along with a slight rise in unemployment to 4.3 percent, citing concerns over the effects of Trump's ongoing tariff regime and signs of slowing private-sector growth. Instead, the labor market not only beat expectations but also delivered upward revisions to previous months' figures: April's job gains were revised up by 11,000 to 158,000, and May's numbers rose by 5,000 to 144,000. (Related: U.S. job market surges past projections despite looming tariff uncertainty.) Wage growth continued to trend upward, with average hourly earnings increasing by 0.2 percent in June. Over the past year, wages have climbed 3.7 percent, outpacing inflation and contributing to one of the strongest periods of real wage growth in recent years. Among private-sector production and non-supervisory workers, hourly pay grew even faster – up 0.3 percent in June alone. Job growth in June was evenly distributed between the public and private sectors. The private sector added 74,000 jobs, while the public sector contributed 73,000. However, federal employment declined by 7,000 positions, reflecting the Trump administration's continued efforts to reduce the size of the federal workforce. Sector-by-sector data painted a mixed but largely positive picture. Construction remained a bright spot, adding 15,000 jobs as demand in real estate and infrastructure projects held steady. Manufacturing dipped slightly, shedding 7,000 jobs – a signal of possible caution among producers amid ongoing supply chain shifts and trade tensions. The services sector remained the primary driver of job growth, contributing 68,000 new positions. Healthcare and social assistance led the way with 58,600 hires, followed by a 20,000-job increase in leisure and hospitality. Retail, tech, financial services and utilities also saw modest gains.

Tariff tensions divide economists on Fed's next move

Oxford Economics economist Nancy Vanden Houten noted that the report is "strong enough to allow the Federal Reserve to keep policy on hold as it monitors the impact of tariffs on inflation." "We expect the unemployment rate to edge higher in the second half of 2025 as the labor market softens," said Vanden Houten. "But not dramatically, given ongoing limits on labor force growth." However, Nationwide Chief Economist Kathy Bostjancic predicted the Fed will cut rates three times by year's end "to bolster a slowing economy." "Many companies remain in a holding pattern and are hesitant to hire new workers amid heightened uncertainty about the impact of tariff policies on economic growth," Bostjancic wrote in a note to clients. "At the same time, they are not laying off workers in a large way, at least not yet." Despite Trump's pressure for lower rates, the Fed has kept policy steady since cutting by a full percentage point late last year. Officials are weighing whether ongoing tariffs will stoke inflation or dampen growth or both. Progress.news has more stories related to this. Watch the video below where Antoni discussed how the U.S. labor market is nowhere near as robust as people thought it was.

This video is from TrendingNews channel on Brighteon.com.

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Tariff tensions divide economists on Fed's next move

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