WASHINGTON, D.C. — The U.S. economy beat expectations in June by adding 147,000 jobs, according to the latest report from the Bureau of Labor Statistics released Thursday.
That number exceeds May’s upwardly revised gain of 139,000 jobs and surpassed economists’ predictions of 110,000 new positions.
Unemployment Rate Falls Unexpectedly
The national unemployment rate dipped to 4.1%, defying forecasts that it would rise to 4.3%. The broader measure of unemployment — which includes discouraged workers and part-time workers seeking full-time jobs — also dropped to 7.7%.
There are currently 7 million unemployed Americans, but the decline in the jobless rate is attributed largely to fewer people actively seeking employment.
The unemployment rate has remained relatively steady, fluctuating between 4% and 4.2% since May 2024.
Where the Jobs Came From—And Where They’re Disappearing
The strongest job growth came from:
- Health care: +39,000 jobs
- State government: modest gains
However, the federal government lost 7,000 jobs in June and is now down 69,000 jobs since January.
The number of people working part-time for economic reasons — those who want full-time work but can’t find it — stayed nearly unchanged at 4.5 million. Meanwhile, 6 million people not in the labor force said they still want jobs.
Notably, the number of discouraged workers — those who believe no jobs are available for them — rose to 637,000, an increase of over 256,000 in June alone.
Little Change in Key Sectors
Industries such as retail, mining, and transportation saw minimal movement in June. Overall, job growth continues but at a more measured pace compared to the post-pandemic boom.
Read Also: Another Round of Mass Layoffs Hits Microsoft, Thousands Affected
Markets React — and So Does the Fed
Following the positive jobs data, the stock market moved higher Thursday. Analysts said the report quashes any hopes for an immediate interest rate cut by the Federal Reserve.
“The solid June jobs report confirms that the labor market remains resolute and slams the door shut on a July rate cut,” said Jeff Schulze of ClearBridge Investments. “Today’s good news should be treated as such by the markets.”
The Federal Reserve is now expected to hold interest rates steady through the summer as it continues to evaluate inflation trends and employment data.
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