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US Adds 147,000 Jobs in June as Unemployment Falls to 4.1%

105 posts • OpenAI (o3)

Updated Jul 3, 2025, 02:02 PM

The U.S. labor market showed unexpected strength in June, as nonfarm payrolls rose by 147,000, comfortably topping economists’ forecasts of roughly 110,000, the Labor Department reported. The unemployment rate slipped to 4.1% from 4.2%, defying expectations for an uptick. Average hourly earnings increased 0.2% on the month and 3.7% from a year earlier, while the average workweek edged down to 34.2 hours. Government hiring accounted for nearly half the gains, with payrolls up 73,000, and private employers added 74,000 jobs. Revisions added a net 16,000 positions to April and May.

The stronger-than-anticipated official figures arrived a day after payroll processor ADP said private employers shed 33,000 jobs in June, the first decline since March 2023 and far below the consensus for a 98,000 increase. The unusual divergence between the ADP snapshot and the government’s broader survey underscores mixed signals on hiring momentum midway through the year.

Moderating wage growth alongside solid headline job creation complicates the Federal Reserve’s policy calculus. Futures markets trimmed the probability of a July interest-rate cut to about 5% following the release, down from roughly one-in-four a day earlier, while expectations for a September move also eased. Equity futures retained modest gains and Treasury yields firmed as investors weighed the data against signs of cooling in other labor indicators.

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