The U.S. economy added 147,000 jobs in June, exceeding expectations despite ongoing trade tensions driven by President Donald Trump’s tariffs.
According to the Bureau of Labor Statistics (BLS), the unemployment rate fell to 4.1% from 4.2% in May, signaling continued labor market strength.
Economists had predicted a decline in job openings, but June saw 8,000 more jobs added compared to May’s revised total of 144,000.
Job growth was concentrated in specific sectors, with state government and healthcare leading the way, adding 47,000 and 39,000 jobs, respectively.
Leisure and hospitality also saw gains, contributing 20,000 jobs. However, federal government employment continued to decline, losing 7,000 jobs in June, part of a broader reduction of 69,000 federal positions since January.
Private sector growth was modest, with only 74,000 jobs added, the smallest monthly gain since October 2024, reflecting caution among employers amid tariff-related uncertainties.
Despite concerns that Trump’s tariffs would disrupt the labor market, the June jobs report suggests resilience, though hiring hesitancy persists.
The White House has downplayed the tariffs’ domestic impact, recently securing a deal with Vietnam to reduce tariffs from 46% to 20%.
However, uncertainty surrounding unresolved trade negotiations with other countries continues to weigh on businesses.
The stock market showed optimism, with the Dow rising 96 points and the S&P 500 up 0.4% after the report.
Meanwhile, continuing unemployment claims remained high at 1.964 million, indicating challenges for job seekers despite low layoff rates.