Employers across the U.S. added 147,000 jobs in June, with the labor market remaining resilient despite slowing economic growth this year. The number is just above the average monthly gain of 146,000 over the last year, according to the Labor Department.
The numbers
Job growth was stronger than expected in June. Payroll gains sailed past the 115,000 predicted by economists polled by financial data firm FactSet.
The unemployment rate ticked down to 4.1% from 4.2% in May, the lowest since February. The rate came in below economists’ forecast of 4.3%, according to FactSet.
What it means
June’s employment data indicates that the labor market hasn’t slowed, despite warnings from economists. Employers continued to add jobs at a steady pace, as they have been for the last several months.
Government employment rose the most in June with 73,000 jobs added. All the while, the federal workforce continues to shed jobs — with 7,000 lost in the same month. This comes after massive cuts in federal jobs by the Department of Government Efficiency, or DOGE, earlier this year, which gutted several key agencies.
What the experts are saying
Economists pointed to the fact that the labor market continues to persevere in spite of an uncertain economic environment. The numbers present a positive contrast to ADP data released earlier this week, which showed big hits to private sector employment and slowdown in wage growth.
“Today’s stronger jobs report confirms a still resilient U.S. labor market, defying, at least for now, the signs of weakness seen in some leading indicators,” Simon Dangoor, head of fixed income macro strategies at Goldman Sachs Asset Management, said in a research note.
The solid job numbers likely mean that the Fed will hold off cutting rates at its meeting this month, experts say. At its most recent meeting, the central bank pencilled in two rate cuts for the remainder of the year.
Bret Kenwell, an investment analyst at eToro, said the better-than-expected job numbers could lead to a relief rally for U.S. stocks. The markets close early today and will not be open tomorrow due to the July 4th holiday. Stock futures were up slightly before the bell.
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