U.S. employers added 147,000 jobs in June as the American labor market continues to show surprising resilience despite uncertainty over President Donald Trump's economic policies. The unemployment rate ticked down 4.1% from 4.2% in May, the Labor Department said Thursday.
Hiring rose modestly from a revised 144,000 in May and beat economists' expectations of fewer than 118,000 new jobs and a rise in the unemployment rate
The U.S. job market has cooled considerably from red-hot days of 2021-2023 when the economy bounced back with unexpected strength from COVID-19 lockdowns and companies were desperate for workers. So far this year, employers have added an average of 130,000 jobs a month, down from 168,000 in 2024 and an average of 400,000 from 2021 through 2023.
But the June numbers were surprisingly strong. State governments added 47,000 workers and healthcare companies 39,000. But manufacturers shed 7,000 jobs.
Labor Department revisions added 16,000 jobs to April and June payrolls. The number of unemployed people fell by 222,000.
Average hourly wages rose 0.2% from May and 3.7% from a year earlier, inching close to the 3.5% year-over-year number considered consistent with the Federal Reserve's 2% inflation target.
Hiring decelerated after the Fed raised its benchmark interest rate 11 times in 2022 and 2023. But the economy did not collapse, defying widespread predictions that the higher borrowing costs would cause a recession. Companies kept hiring, just at a more modest pace.
Employers are now contending with fallout from Trump's policies, especially his aggressive use of import taxes — tariffs.
Mainstream economists say that tariffs raise prices for businesses and consumers alike and make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting U.S. exporters.
The erratic way that Trump has rolled out his tariffs — announcing and then suspending them, then coming up with new ones — has left businesses bewildered.
Manufacturers responding to a survey released this week by the Institute for Supply Management complained that they and their customers were reluctant to make decisions until they understood where Trump's tariffs would end up. "That whiplash has to stop and it has to stay stopped," said Susan Spence, chair of the ISM's manufacturing survey committee.
