U.S. economy adds 147,000 jobs in June, defying slowdown expectations
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The U.S. economy added 147,000 jobs in June, while the unemployment rate edged down to 4.1%, the Labor Department said on Thursday.
Why it matters: Hiring was stronger than anticipated, defying other data showing a slowing job market.
- Economists forecast the labor market added roughly 110,000 jobs in June.
By the numbers: The Labor Department said that jobs growth was a combined 16,000 higher than initially reported in April and May, after a string of downward revisions in recent months.
- The report flies in the face of data released earlier this week that showed sluggish hiring rates, as economic uncertainty has made employers hesitant to hire and invest.
Details: Jobs growth was especially concentrated in state and local government last month, which saw employment rise by 73,000.
- The labor force continued to shrink, with roughly 130,000 workers leaving, helping put downward pressure on the unemployment rate.
The big picture: The highly anticipated jobs report, released one day earlier than usual because of the July 4th holiday, comes as the Federal Reserve hunts for evidence of labor market weakness while tariff effects roll through the economy.
The bottom line: Fed chair Jerome Powell, facing immense pressure from President Trump to cut interest rates, has said that the economy looks strong enough to approach the next rate decision with caution. The report supports that posture.
Editor's note: This story has been updated with additional report data.
