U.S. Economy Adds 147,000 Jobs in June; Unemployment Rate Holds Steady at 4.1%

 

Washington D.C. – July 3, 2025

The U.S. economy added 147,000 nonfarm payroll jobs in June, outperforming forecasts and signaling continued strength in the labor market. According to the latest jobs report from the U.S. Bureau of Labor Statistics, the unemployment rate held steady at 4.1 percent, remaining within a narrow band seen since May 2024.

Economists had expected gains between 110,000 and 115,000 jobs, making June’s numbers a notable upside surprise. Revisions to previous months also pointed to a stronger trend in job creation, with April revised upward to 158,000 jobs and May to 144,000. The data suggests a durable, if moderating, pace of employment growth.

Government and health-related sectors were the largest contributors to June's job gains. State government, driven by education hiring, added 47,000 jobs, while local government education expanded by 23,000. The health care sector remained a consistent growth engine, contributing 39,000 jobs. Conversely, federal employment shrank by 7,000 positions.

Wage growth continued at a moderate pace, with average hourly earnings rising by 8 cents to $36.30—a 0.2 percent monthly increase and a 3.7 percent rise over the past year. The average workweek declined slightly to 34.2 hours.

However, not all metrics were positive. The number of long-term unemployed increased by 190,000 to 1.6 million, now making up over 23 percent of the total unemployed population. The number of discouraged workers—those who believe no jobs are available for them—also rose notably, reflecting ongoing difficulties in parts of the labor force despite broader gains.

The June jobs report will play a key role in shaping Federal Reserve policy in the coming months, especially as economic uncertainty and inflation concerns remain part of the broader economic landscape.

Related Questions and Answers

Q1: Which sectors contributed most to U.S. job growth in June 2025?
A1: State and local government (particularly education) and the health care sector were the largest contributors to job gains in June.

Q2: How did average hourly earnings change in June?
A2: Average hourly earnings rose by 8 cents to $36.30, reflecting a 3.7% increase over the past 12 months.

Q3: What are the concerns despite overall job growth?
A3: Long-term unemployment and the rise in discouraged workers highlight persistent challenges for segments of the labor market.