US Adds 147,000 Jobs June Unemployment Drops 4.1%

The U.S. labor market remained resilient in June, with employers adding 147,000 jobs—mostly in the public sector, healthcare, and social assistance—leading to a slight decline in the national unemployment rate to 4.1%. Job gains were consistent with the 12-month average, though federal government employment continued to decline, with total losses since January reaching 69,000. Average hourly earnings rose by 0.2%, reflecting a 3.7% increase over the past year. The stronger-than-expected jobs report prompted a rally on Wall Street, a rise in bond yields, and a rebound in the U.S. dollar, while expectations for imminent Federal Reserve interest rate cuts diminished significantly. Despite solid hiring, economic uncertainty persists due to the impacts of President Trump's tariffs, immigration policies, and fiscal measures like the One Big Beautiful Bill Act, which collectively influence inflation, labor force participation, and economic growth. Global markets showed mixed reactions, with European and Wall Street futures gaining modestly, Asian markets mixed, and commodities like oil and gold declining amid trade uncertainties.