US Adds 147,000 Jobs in June, Unemployment Steady at 4.1%

The US economy added 147,000 nonfarm payroll jobs in June, while the unemployment rate remained unchanged at 4.1%, according to the Bureau of Labor Statistics. The report indicates steady, moderate labor market growth, with gains concentrated in state government and healthcare, offset by ongoing cuts in federal government employment.

Labor Market Details

Unemployment and Participation

Total unemployed: 7.0 million, unchanged from May
Labor force participation rate: Steady at 62.3%
Employment-population ratio: Unchanged at 59.7%

Demographics

Unemployment for Black workers rose to 6.8%
Rates for White and adult female workers fell to 3.6%
Rates for men (3.9%), teens (14.4%), Asians (3.5%), and Hispanics (4.8%) showed little change

Long-term Unemployment and Underemployment

Long-term unemployed (27 weeks or more) rose by 190,000 to 1.6 million, now 23.3% of the total unemployed
Involuntary part-time workers totaled 4.5 million, reflecting those seeking full-time roles
Marginally attached workers increased by 234,000 to 1.8 million, with discouraged workers rising to 637,000

Industry Performance

Government (+73,000 jobs):

State government: +47,000, largely in education (+40,000)
Local education: +23,000
Federal government: -7,000

Healthcare (+39,000 jobs):

Hospitals: +16,000
Nursing and residential care facilities: +14,000

Social Assistance (+19,000 jobs):

Gains concentrated in individual and family services (+16,000)

Other major sectors, including manufacturing, retail, construction, and leisure, reported little net change in employment during June.

Wages and Work Hours

Average hourly earnings rose by $0.08 to $36.30 in June, up 3.7% year-over-year
Nonsupervisory and production workers saw their hourly pay increase by $0.09 to $31.24
The average workweek decreased slightly to 34.2 hours, while hours for production workers dropped to 33.5

Revisions to Previous Months

April’s job gains were revised upward by 11,000 to 158,000
May’s job gains were revised upward by 5,000 to 144,000
Combined, April and May added 16,000 more jobs than previously reported

Overall

June’s report suggests the labor market remains resilient but is growing at a moderated pace compared to late 2024. While sectors like healthcare and state education continue to add jobs, other industries are showing limited momentum. With steady wage growth and a stable unemployment rate, the Federal Reserve will closely monitor these employment trends as it evaluates the next steps for maonetary policy in the months ahead.

Source: Bureau of Labor Statistics

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