U.S. hiring surpassed expectations in June with the addition of 147,000 jobs, according to newly released data.
This figure significantly exceeded analysts’ projections of 110,000, with government and healthcare sectors leading the growth.
The Labor Department reported that the unemployment rate declined to 4.1%, a decrease from 4.2% in May.
However, concerns persist regarding private sector hiring, as analysts note increasing caution among firms, with many employers hesitant to hire new staff or replace departing employees.
Job gains for April and May were also revised upward by a combined total of 16,000.
Hiring in the federal government, professional services, and manufacturing experienced declines in June.
Conversely, state and local government education roles increased, with approximately 63,500 positions added, while healthcare and social assistance saw a gain of 58,600 jobs.
Despite the declining unemployment rate, the number of long-term unemployed individuals in the U.S. rose by 190,000, reaching a total of 1.6 million.
The government’s monthly jobs report remains a closely-monitored indicator of economic health.
George Brown, Senior Economist at Schroders, commented: “For all the tariff turmoil, the U.S. labor market remains remarkably resilient.”
He suggested companies are reluctant to reduce their workforce following labor shortages in recent years, adding, “Pockets of this may persist in certain sectors and states given the Trump administration’s hard-line stance on immigration.”
Some economists have posited that businesses are currently in a state of uncertainty, awaiting the outcome of President Donald Trump’s 90-day pause on implementing higher import taxes on numerous countries.
Trade negotiations are ongoing with several countries, including the UK, with whom the Trump administration finalized a partial trade agreement in June.
While there have been predictions of increased inflation due to tariffs, and despite forecasts that the rate of price increases may accelerate over the summer, economists anticipate the U.S. Federal Reserve to implement another rate cut in September.
Fed Chair Jerome Powell stated on Tuesday that the central bank intends to “wait and learn more” about the impact of tariffs on inflation before further lowering rates.
Last month, the Fed maintained its benchmark overnight interest rate in the 4.25%-4.50% range, where it has remained since December.
President Trump has repeatedly criticized Mr. Powell for not cutting interest rates, and on Wednesday, he called for his immediate resignation.
“‘Too Late’ should resign immediately!!!” Trump posted on his Truth Social platform.
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