Economy Adds 147,000 Jobs in June; Industry Economists Weigh In

(Image courtesy of BLS; Breakout image courtesy of RDNE Stock project/pexels.com)

Total nonfarm payroll increased by 147,000 in June, and the unemployment rate was 4.1%, the U.S. Bureau of Labor Statistics announced.

The unemployment rate fell from 4.2% in May.

Job gains occurred in state government and health care, and jobs fell in the federal government.

The change in total nonfarm payroll for April was revised up by 11,000, from 147,000 to 158,000. It was revised up by 5,000 for May, from 139,000 to 144,000.

“Job growth came in at 147,000 in June, in line with the average pace for the last 12 months. However, half of these job gains were in state and local government, leaving private sector job gains at 74,000, at half their pace of recent months,” said MBA SVP and Chief Economist Mike Fratantoni.

He noted that the drop in the unemployment rate is the result of more individuals leaving the labor force.

“Wage growth slowed again in June to a 3.7% rate over the last 12 months,” he continued. “Taken together, these data indicate a job market that is holding up reasonably well given the uncertainties facing this economy. While there are certainly some signs of softening in the private sector, the report is likely to keep the Federal Reserve on hold for now. MBA is still forecasting two cuts from the Fed this year.”

“While the June pop in jobs, combined with upward revisions to March and April reports, signal hiring has stabilized following a sluggish start to 2025, it means July will be a dud, with a Fed rate cut unlikely and dropping the odds for a move in September,” said First American Senior Economist Sam Williamson. “The housing market has been waiting for a Fed rate-cutting cycle to light the fuse on the 2025 home-buying season, but the labor market’s surprising resilience has extinguished some of that optimism for now.”