The U.S. economy added 147,000 jobs in June, beating expectations and pushing the unemployment rate down to 4.1%, the lowest since February, according to new data from the Bureau of Labor Statistics (BLS). Job gains were concentrated in state government and healthcare, which added a combined 86,000 positions.
The numbers mark a sign of resilience in the face of economic headwinds from President Trump’s ongoing trade war, which has rattled markets and raised concerns over increased consumer prices. John Waldron of Goldman Sachs called the economy “surprisingly resilient,” according to The Guardian.
Still, beneath the upbeat headline figures, several warning signs emerged. Private sector jobs saw their smallest increase since October 2024, according to the report, though that total was more optimistic than a separate report from payroll firm ADP, published one day earlier, which said the private sector lost 33,000 jobs.
The labor force participation rate fell to 62.3%, its lowest level since 2022, with 234,000 more Americans not looking for work compared to May.
Trump has downplayed concerns over tariffs’ impact on the economy while pressuring Federal Reserve chair Jerome Powell to cut interest rates. Powell, however, attributed higher inflation forecasts and stalled rate cuts to Trump’s tariffs, saying the Fed was “on hold” until uncertainty clears.
The White House has scrambled to reach tariff deals with trading partners, most recently with Vietnam, as its 90-day tariff pause nears expiration next week.
Overall, economists say the report suggests that the economy remains strong but increasingly fragile. “The U.S. job market continues to largely stand tall and sturdy, even as headwinds mount — but it may be a tent increasingly held up by fewer poles,” wrote Cory Stahle, an economist at Indeed Hiring Lab, on Thursday. “This is not a bad report, but it might not be as solid as it seems on the surface. There are real weaknesses in the market — including concentrated job gains, slowing wage growth, and falling participation — that have persisted for months, and there are scant signs of those concerns fading anytime soon.”
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