June jobs report tops expectations with strong labor market
June jobs report tops expectations with strong labor market
The U.S. added 147,000 jobs in June as the unemployment rate ticked down to 4.1%
June jobs report tops expectations with strong labor market
The U.S. added 147,000 jobs in June as the unemployment rate ticked down to 4.1%
07.07.2025
Key takeaways
U.S. added 147,000 jobs in June, with upward revisions for April and May adding 16,000 more jobs overall
Unemployment rate dipped from 4.2% to 4.1%, but long-term unemployment rose
Job gains concentrated in health care, social assistance, and state/local government
The U.S. economy added more jobs in June and the unemployment rate edged lower, but signs of long-term joblessness are rising.
The U.S. gained 147,000 jobs in June, according to the U.S. Department of Labor (DOL), and the labor market is continuing to expand this year, beating predictions of 110,000 new jobs.1,2 While job growth has slowed slightly from the spring, upward revisions to April and May added 16,000 jobs to the total.3
The unemployment rate ticked down to 4.1% in June, although more Americans are remaining out of work for 27 weeks or more.4 That number jumped by 190,000 to 1.6 million, making up over 23% of all unemployed workers, highlighting some challenges for job seekers.5
Read more: U.S. labor market adds 139,000 jobs in May as unemployment holds at 4.2%
What industries are hiring?
The report shows that job gains were concentrated in key public-facing sectors:6
Health care: +39,000 jobs
State government: +47,000 jobs
Local government: +23,000 jobs
Social assistance: +19,000 jobs
Read more: April jobs report signals steady labor market
What does this mean for interest rates and the Federal Reserve (the Fed)?
For investors, the June report could mean that the Fed is less likely to cut interest rates when they meet on July 29-30.7
According to CNBC, markets remain cautious now that the expectations of a rate cut is delayed until at least September.8
Read more: The pursuit of workplace happiness
Frequently asked questions about the June 2025 jobs report
What is the current U.S. unemployment rate?
As of June 2025, it stands at 4.1%, according to the DOL.
How many jobs were added in June 2025?
The U.S. economy added 147,000 jobs last month.
Which sectors saw the most hiring?
Health care, government, and social assistance led job gains.
Is long-term unemployment rising?
Yes. The number of long-term unemployed rose to 1.6 million.
What might this mean for interest rates?
The Fed may hold steady for now, with cuts possible later in 2025 depending on inflation and labor trends.
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1 U.S. Bureau of Labor Statistics, “Employment Situation Summary - 2025 M06 Results,” July 2025.
2 CNBC, “U.S. payrolls increased by 147,000 in June, more than expected,” July 2025.
3 The Wall Street Journal, “Steady Hiring Added 147,000 Jobs to U.S. Economy in June,” July 2025.
4 U.S. Bureau of Labor Statistics, “Employment Situation Summary - 2025 M06 Results,” July 2025.
5 Ibid
6 Ibid
7 Business Insider, “The jobs report has dashed hopes of a rate cut this summer,” July 2025.
8 CNBC, “U.S. payrolls increased by 147,000 in June, more than expected,” July 2025.
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