Labor Market Continues to Cool in June
June’s labor report reinforces a pattern of moderated job growth amid economic headwinds. While the pace of hiring remains positive, gains have slowed and sector imbalances persist.
Federal government jobs stabilized following the steep cuts in May, while hiring at the state and local levels increased. A drop in voluntary quits suggests reduced worker confidence or mobility.
Wage growth continues to outpace inflation, but business sentiment has dimmed. Fears of prolonged policy stagnation, global trade friction and softening consumer spending loom large.
With three consecutive months of job growth below the 12-month average, labor economists are watching closely for signs of broader labor contraction through late summer.
The Numbers*:
The U.S. economy added 147,000 jobs in June, below the 12-month average of +148K.
The unemployment rate remained slightly decreased to 4.1%.
There were 7.8 million** open jobs.
The labor force participation rate decreased to 62.3%.
The number of job quits in the U.S. remained the same at 3.5 million**.
- Average hourly earnings rose by 0.2% month-over-month to $36.30.
- Average weekly hours worked remained unchanged at 34.3 hours.
- Total hires were 5.5 million**, while total separations were 5.4 million**.
- Within separations, layoffs/discharges accounted for 1.6** million.
Industry Trends:
Industry | June Jobs | Notes |
Healthcare | + 39,000 | Continued strong hiring across hospitals, social assistance, and nursing care facilities |
Government | + 22,000 | All gains were in local government education |
Social Assistance | + 17,000 | Particularly strong in family and individual services |
Transportation & Warehousing | + 7,500 | Bottling and distribution sectors held steady, buoyed by stable consumer demand and summer logistics ramp-ups |
Information | - 9,000 | Cuts continued in publishing, streaming, and data services as companies recalibrate workforce sizes |
Manufacturing | - 7,000 | Durable goods (including eyewear and consumer goods) were hardest hit. Hiring freezes and cautious outlooks continue across many plants |
The change in employment for April was revised up by 11,000, from +147,000 to +158,000, and the change for May was revised up by 5,000, from +139,000 to +144,000.
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* Above represents June 2025 Data
** The figures above for openings, hires and separations reflect May 2025, as reported in the June release
Sources:
- U.S. Bureau of Labor Statistics – Employment Situation
- Forbes
- CNN Business
- Fox Business
- CNBC
- Reuters
Past Reports