U.S. Economy Adds 147000 Jobs in June Defying Slowdown Predictions

 

The U.S. economy added 147000 jobs in June surpassing economists’ expectations and signaling resilience in the labor market despite broader concerns about economic slowing. The unemployment rate edged down slightly to 4.1 percent according to new data released by the Labor Department on Thursday.

Analysts had projected job gains of around 110000 for June but the actual number beat those forecasts by a significant margin. In addition to the June figures the Labor Department revised job growth numbers from April and May upward by a combined 16000 after several months of downward revisions. These gains suggest that the job market remains stronger than many recent reports have indicated.

One notable area of growth was in state and local government hiring which contributed 73000 new jobs in June. However the labor force participation rate showed continued weakness as approximately 130000 individuals exited the workforce. This trend helped reduce the unemployment rate by tightening labor supply rather than reflecting higher employment levels alone.

The positive job report comes amid mounting pressure on the Federal Reserve to consider cutting interest rates especially from President Trump. Fed Chair Jerome Powell has indicated that the central bank will proceed cautiously as it assesses the economy’s health. The stronger than expected jobs numbers reinforce Powell’s measured stance suggesting there may not be an immediate need for rate cuts.

This data also contradicts earlier reports from the week that signaled sluggish hiring and economic uncertainty which had raised concerns among employers about investment and expansion. Despite those warnings the labor market appears more stable than feared.

The June jobs report was released one day earlier than usual due to the July Fourth holiday. It serves as a key indicator for the Fed as it weighs the next steps for monetary policy in a climate affected by tariffs and ongoing global economic challenges.

See also: US Reimposes Sanctions on Iranian Oil After Ceasefire, Tensions Rise