June Job Growth and Unemployment Rate Best Expectations; Jobs Added to April, May

Craig Bannister | July 3, 2025
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Both job growth and the unemployment rate bested expectations in June, the U.S. Bureau of Labor Statistics (BLS) reported Thursday.

June’s 4.1% unemployment rate was both down from May’s 4.2% level and better than the increase to 4.3% analysts had predicted. Compared to June of 2024, the unemployment rate was unchanged.

Likewise, the 147,000 nonfarm payroll jobs created bested analysts’ forecast of 110,000 for June. Additionally, upward revisions increased employment growth in April (+11,000) and May (+5,000), raising the two-month total by 16,000 jobs.

June’s 147,000 nonfarm payroll employment growth was in line with the average monthly gain of 146,000 over the prior 12 months.

Job gains were recorded in state government, local government and health care, while the federal government continued to lose jobs:

  • Government employment: +73,000 in June.
  • State government: +47,000 (Education +40,000).
  • Local government: +23,000.
  • Federal government: -7,000, down 69,000 since reaching a recent peak in January. (Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.)
  • Health care +39,000 (Hospitals +16,000, Residential Care Facilities +14,000).
  • Social assistance: +19,000, reflecting continued growth in individual and family services (+16,000).

 

Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; and other services.

Average hourly earnings for all employees on private nonfarm payrolls rose 0.2% from the previous month. Over the past 12 months, average hourly earnings have increased by 3.7%.