In June, the U.S. economy created 147,000 ( 147K ) new jobs, indicating that the labor market is still strong despite Donald Trump’s trade war. Economists had initially predicted a surge in job opportunities, but the number of jobs created exceeded their expectations. Rather, June saw the addition of 3,000 more jobs than May.
based on recently released Bureau of Labor Statistics (BLS) data. In fact, the Surge unemployment rate dropped from 4.2% in May to 4.1%. The report shows how resilient the US economy is despite ongoing inflationary pressures and trade disputes worldwide.
Nonetheless, hiring practices in the private sector continue to raise concerns, and analysts note a growing Surge of caution among businesses, with many being reluctant to hire new employees or replace departing ones. In June, hiring for jobs in manufacturing, professional services, and the federal government fell.
Economists have been concerned that the labor market has simply been slower to exhibit sensitivity to the tariffs, despite the fact that the president’s tariffs have Surge the US stock market, which has seen a dramatic recovery after plunging 15% in the spring. The number of long-term unemployed people in the United States rose by 190,000 to 1.6 million, even though the unemployment rate decreased.
Sectors That Drove the Surg Jobs
- Healthcare: added 36,000 jobs, driven by ambulatory care services and hospitals.
- Government: work increase of 21,000, especially in the local school system.
- Social assistance: saw a rise of 22,000 jobs.
- Construction: added 27,000 jobs, reflecting sustained demand despite high interest rates.
In contrast, sectors like retail and transportation showed modest or flat growth, reflecting caution amid persistent inflation and supply chain issues.
While job gains slowed compared to May’s revised figure of 218,000, June’s total still marked a healthy expansion, especially considering the ongoing uncertainty surrounding trade policies and interest rate concerns. Analysts had forecasted around 140,000 new jobs, making the actual figure a positive surprise.
The slowest year-over-year gain in almost a year, average hourly wages surge by only 0.2% in June (an 8-cent increase to $36.30), indicating a modest annual increase of 3.7% and moving closer to the 3.5% range thought to be consistent with the Fed’s 2% inflation target. Economists noted this cooling in wage gains – along with shorter workweeks – as a sign the labor market may be losing steam, despite the headline strength in job growth.
Average hourly earnings rose by 0.3% for the month, and 3.9% over the past year, slightly below the 4.1% annual rate recorded in May. While wage growth has moderated, it remains solid, helping to support consumer spending without significantly fueling inflation.
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Some economists have noted that businesses are currently in limbo as they await the outcome of President Donald Trump 90 day pause on implementing higher import tariffs. The uncertainty surrounding the end of this pause has led many firms to adopt a cautious hiring and investment stance, which could influence labor and wage trends in the months ahead.
Growing trade surge tensions are putting fresh strain on the US economy. Beijing’s retaliatory actions and former President Donald Trump’s proposed new tariffs on Chinese imports have sparked worries about potential future economic disruption. While businesses and consumers have voiced concerns about rising prices, the White House has been downplaying the effect of the tariffs on the domestic economy for months.
As the administration works to reach agreements with a number of nations that would otherwise be subject to harsh new tariffs, a 90-day moratorium on some of Trump’s highest tariffs is scheduled to end next week. The labor market seems to be generally resilient in spite of these risks, indicating a surge in underlying economic momentum.
Financial markets responded positively to the report, with the S&P 500 and Dow Jones opening higher on Friday. Economists noted that the data could influence the Federal Reserve’s upcoming decisions on interest rates. According AP research, in order to fight rising inflation, the Fed raised its benchmark interest rate eleven times in 2022 and 2023. The Fed changed its strategy and lowered interest rates three times in 2024–2025 as inflationary pressures subsided last year.
This year, however, the central bank has become cautious. According to a commentary by Carl Weinberg, chief economist at High Frequency Economics, “Today’s results are more than positive enough to reduce expectations for Fed rate cuts in the wake of tariffs and policy chaos, at least for now.” Even though inflation is still above the Fed’s 2% target, the steady job growth and policy uncertainty may delay any immediate rate changes.
