The U.S. economy added 147,000 jobs in June, surpassing expectations, with unemployment ticking down to 4.1% from 4.2%, according to the Bureau of Labor Statistics. But despite headline gains, concerns are mounting about labor market softness and President Donald Trump's tariffs.
Most gains came from healthcare, hospitality, and local government. Excluding public sector hiring, private job growth slowed to 74,000 — the weakest since October 2024. Wage growth also cooled, with average hourly earnings up just 0.2%.
The jobs report again shattered expectations, with 147,000 new jobs added in June! @POTUS’ America First policies continue to unleash historic growth and prosperity for our workers 🇺🇸 pic.twitter.com/VYDpginpfZ
— U.S. Department of Labor (@USDOL) July 3, 2025
Black unemployment jumped to 6.8%, the highest in over two years. Labor force participation dipped, raising questions about the impact of tighter immigration policy.
Despite muted layoffs, job seekers are staying unemployed longer. Continuing claims remained at 1.96 million, and 23.3% of unemployed Americans have been without work for over six months.
Markets responded positively, with the Dow up 365 points Thursday morning. Still, economic uncertainty and trade policy remain key risks.
