US Job Growth Surges 147,000 Jobs, Unemployment Falls to 4.1%

The U.S. labor market showed stronger-than-expected growth in June 2025, with nonfarm payrolls increasing by 147,000 jobs and the unemployment rate dropping to 4.1%, according to the Bureau of Labor Statistics. Job gains were primarily concentrated in state government and health care sectors, while the federal government sector experienced job losses, partly due to layoffs in Washington, D.C. Despite the solid headline numbers, economists noted that hiring outside government and health care remained weak, indicating uneven labor market momentum. The Federal Reserve, led by Chair Jerome Powell, is carefully weighing these mixed signals alongside inflation concerns and trade tensions initiated by President Donald Trump, which have delayed interest rate cuts. While some analysts see potential for a rate cut later in the year, the strong employment data and inflationary pressures suggest the Fed may hold rates steady for now. Additionally, small business confidence remains relatively optimistic about the administration's economic policies, which aim to support growth and control inflation.