June Job Surge: U.S. Adds 147,000 Positions, Easing Workforce Slowdown Fears

The U.S. job market is showing some ups and downs as of June. In that month, the economy added 147,000 jobs, which was better than expected. This is a good sign that things are moving in the right direction. The unemployment rate dipped slightly from 4.2% to 4.1%, according to the Bureau of Labor Statistics.

Most job growth came from state and local government education, which added 63,500 positions. Healthcare and social assistance followed with 58,600 new jobs. Industries like leisure, hospitality, and construction also saw gains. However, the federal government sector and manufacturing reported job losses.

Despite these positive figures, there are concerns. The number of long-term unemployed people increased by 190,000, bringing the total to 1.6 million. This increase has pushed the duration of unemployment back to near-pandemic levels, causing worries about job stability.

Federal Reserve Chair Jerome Powell described the overall economic conditions as “solid,” highlighting growth in wages and job creation. However, his statements haven’t resonated well with everyone, especially President Trump, who has publicly called for lower interest rates and even suggested Powell should resign.

A recent survey by the Institute for Supply Management revealed that many manufacturers view the current business environment as chaotic, making it hard for them to plan for the future. The private payroll processor ADP also reported a decline in job additions for June, the first decline since March 2023.

“It’s a tricky balance,” says Nela Richardson, chief economist at ADP. While layoffs are not common, companies are hesitant to hire new employees or replace those leaving.

The uncertainty surrounding tariffs continues to loom over businesses. President Trump has set July 9 as a key deadline for negotiating new trade deals. While he initially suggested he wouldn’t extend this deadline, recent comments from White House officials suggest its importance may be overstated.

Meanwhile, U.S. companies announced 82,932 planned hires through June—a 19% increase from the same time last year. Yet, this number is still relatively low compared to historical averages. “We are seeing cautious growth in hiring, which reflects the current economic uncertainty,” said Andrew Challenger from Challenger, Gray & Christmas.

Overall, while some sectors show growth, underlying concerns about long-term employment, economic policy, and market stability create a mixed picture of the job market today.

For further insights, you can check the Bureau of Labor Statistics and the Institute for Supply Management.

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