Experts figured the U.S. job market would produce some 110,000 jobs in June after having exceeded expectations the previous month.
According to statistics released by the Bureau of Labor Statistics Thursday, though, the labor market did much better than that, adding 147,000 last month. That’s just more than the revised 144,000 in May (April was also adjusted upward to 158,000).
The unemployment rate fell to 4.1%, which is the lowest rate since February and lower than the predicted 4.3%, CNBC reported.
According to the statistics, the labor force participation rate dropped to 62.3%, its lowest level since late 2022, owing to an increase of 329,000 of those not counted in the labor force, according to the CNBC report.
The June gain was almost exactly in line with the year-to-date average of 146,000.
“The solid June jobs report confirms that the labor market remains resolute and slams the door shut on a July rate cut,” Jeff Schulze, head of economic and market strategy at ClearBridge Investments, told CNBC. “Today’s good news should be treated as such by the markets, with equities rising despite the accompanying pickup in interest rates.”
Government employment posted a large gain, leading all categories with an increase of 73,000 due to solid boosts in state and local hiring, particularly in education-related jobs, which rose by 40,000. Federal government, which is still feeling the impact of cuts from Elon Musk’s so-called Department of Government Efficiency, lost 7,000.
In addition, health care again was strong, adding roughly 39,000, while social assistance contributed about 19,000.
“The US job market continues to largely stand tall and sturdy, even as headwinds mount — but it may be a tent increasingly held up by fewer poles,” wrote Cory Stahle, economist at Indeed Hiring Lab, according to the CNBC report. “The headline job gains and surprising dip in unemployment are undoubtedly good news, but for job seekers outside of healthcare & social assistance, local government, and public education, the gains will likely ring hollow.”
