US Jobs Up, Private Hiring and Wages Slow

The June 2025 U.S. jobs report showed a gain of 147,000 jobs and a decline in the unemployment rate to 4.1%, surpassing forecasts and suggesting short-term labor market resilience. Around half of the new jobs came from state and local governments, while private sector hiring slowed to its weakest pace since October. Manufacturing employment declined for a second consecutive month, and the labor force shrank as the average duration of unemployment grew, indicating increased difficulty for job seekers. Economists highlighted risks from tariffs, federal budget cuts, and potential impacts of upcoming federal buyouts, which could soon drive up unemployment. Wage growth moderated in June, moving closer to the Federal Reserve’s inflation targets. Despite strong headline numbers, underlying data signal a more vulnerable labor market.