US Labor Market Adds 147,000 Jobs Unemployment Falls to 4.1%

The June 2025 U.S. jobs report revealed stronger-than-expected labor market performance, with 147,000 jobs added and the unemployment rate falling to 4.1%, surpassing forecasts. Government jobs, especially at state and local levels, along with healthcare, were key contributors to this growth, while the federal government continued to shed jobs. Despite these positive headline figures, underlying data signal emerging challenges: hiring stalled in white-collar sectors such as professional services, finance, and retail, amidst growing concerns about AI-driven workforce reductions potentially impacting up to half of white-collar jobs. Additionally, disparities persist, as the Black unemployment rate rose to 6.8%, and long-term unemployment and discouraged worker counts increased, suggesting structural strain in the labor market. Wage growth was modest, averaging a 0.2% monthly increase and 3.7% annually, slightly below expectations. Market reactions included a sharp increase in Treasury yields and a steep decline in odds for imminent Federal Reserve interest rate cuts, reflecting tempered expectations for monetary easing despite the resilient job gains.