The U.S. economy added jobs in June at a faster pace than in recent months, despite ongoing uncertainty around trade, tax, and monetary policies.
The Labor Department reported Thursday that employers added 147,000 jobs in June, exceeding economists’ expectations of 110,000, based on a survey by LSEG. The unemployment rate edged down slightly to 4.1%, below the anticipated 4.3%.
Job gains for April and May were both revised upward, with April’s total rising by 11,000—from 147,000 to 158,000—and May’s increasing by 5,000—from 139,000 to 144,000. Together, these revisions add 16,000 more jobs than previously reported for those two months.
Private sector payrolls grew by 74,000 in June, falling short of the 105,000 jobs economists had forecasted. Government payrolls increased by a net 73,000 jobs across federal, state, and local levels. The federal government lost 7,000 jobs in June, continuing a downward trend that has seen a total decline of 69,000 jobs since January.
The Bureau of Labor Statistics noted that federal employees on paid leave or receiving severance are still counted as employed in the survey. State government employment rose by 47,000 jobs, mostly in education (+40,000), while local government education employment also increased (+23,000).
The manufacturing sector declined by 7,000 jobs in June, a sharper drop than the 5,000 job loss predicted by LSEG economists.