In a surprising show of resilience, the U.S. labor market strengthened in June despite growing concerns tied to recent trade tariffs.
According to Breitbart, Employers added 147,000 jobs last month while the unemployment rate declined to 4.1%, outperforming forecasts and easing fears of a potential economic slowdown.
According to the Department of Labor, the June job gains exceeded the 110,000 new positions that many economists had anticipated. At the same time, analysts had expected unemployment to creep upward to 4.3%, but it instead moved in the opposite direction.
This labor market performance has confounded many analysts who warned that recently enacted tariffs from the Trump administration might weaken hiring activity across key industries. The data, however, suggests that the job market remains steady despite those trade-related headwinds.
The Department also revised earlier employment numbers, adding more optimism to the overall picture. April's job total was adjusted upward by 11,000, to 158,000, while May's count increased by 5,000, to 144,000. Those revisions brought an additional 16,000 jobs to prior months’ totals.
In addition to headline gains, wage figures also showed positive movement. Average hourly earnings rose 0.2% in June and have climbed 3.7% over the past 12 months, surpassing the rate of inflation—a key signal of real income growth for working Americans.
Wages for private-sector production and nonsupervisory employees also advanced, posting a monthly increase of 0.3%. That subgroup includes many blue-collar and service jobs and is often used as a measure of income trends among the broader working population.
Despite a number of strong indicators, some signs pointed to uneven progress across industries. While both private and public sectors contributed to June’s gains, the strength was not evenly distributed among job categories.
The private sector added 74,000 new jobs in June, while the public sector matched that figure with a gain of 73,000 positions. However, federal government employment dipped by 7,000 roles, reflecting a decline that offset some of the broader public hiring activity.
Sector performance varied widely. Construction added 15,000 roles, suggesting continued momentum in building activity. Meanwhile, the manufacturing sector shed 7,000 jobs, marking a slowdown in an area that had shown inconsistencies in recent months.
The services sector saw a notable boost overall, adding 68,000 jobs. Healthcare and social assistance accounted for the bulk of those gains, expanding by 58,600 positions and continuing a long-term trend within a growing segment of the economy.
The leisure and hospitality segment also grew, adding 20,000 jobs as consumer demand remained stable. Retail, financial services, utilities, and tech-related roles registered modest improvements as well, though without large surges.
Economists have long monitored jobs in education, health care, and social services—sometimes referred to as "government-adjacent" sectors—separately due to their strong reliance on public funding and regulations. When excluding these areas, the remainder of private sector hiring came in weaker than expected, suggesting soft spots remain in nonpublic-influenced fields.
The data overall paints a complex picture. On one hand, the broader labor market is expanding, and wage growth appears to be keeping pace with or surpassing inflation. On the other, disparities across industries and shifting government employment complicate the view.
Analysts say the strong headline numbers, combined with positive wage trends and upgraded previous months’ figures, should help bolster confidence in the labor market. However, the uneven distribution of jobs and weakness in sectors such as manufacturing could raise questions about how long the momentum can continue.
“Employers in the United States added 147,000 workers to their payrolls in June,” the Department of Labor said Thursday. “The unemployment rate declined to 4.1 percent, defying predictions of labor market sluggishness following the implementation of President Trump’s tariffs.”
While the broader picture points to continued growth, policymakers and businesses alike may exercise caution as global trade negotiations and domestic policy debates play out. How the labor market responds in the coming months may depend heavily on external and regulatory developments.
