The US job market’s resilience continues to surprise economists

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U.S. employers added 147,000 jobs in June as the American labor market continues to show surprising resilience despite uncertainty over President Donald Trump’s economic policies. The unemployment rate ticked down to 4.1% from 4.2% in May, the Labor Department said Thursday.

Hiring rose modestly from a revised 144,000 in May and beat economists’ expectations of fewer than 118,000 new jobs and a rise in the unemployment rate.

The U.S. job market has cooled considerably from red-hot days of 2021-2023 when the economy bounced back with unexpected strength from COVID-19 lockdowns and companies were desperate for workers. So far this year, employers have added an average 130,000 jobs a month, down from 168,000 in 2024 and an average 400,000 from 2021 through 2023.

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But the June numbers were surprisingly strong. Health care jobs increased by 39,000. State governments added 47,000 workers and local governments 33,000. But the federal government lost 7,000, probably reflecting Trump’s hiring freeze. Manufacturers shed 7,000 jobs. Overall, the number of unemployed people fell by 222,000.

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