JULY 7, 2025 – US ADDS 147,000 NEW JOBS IN JUNE
The Labor Department reported the economy added 147,000 new jobs last month, above the gain of 110,000 that were expected. The unemployment rate fell from 4.2 percent to 4.1 percent month-over-month. New jobs in March and April were revised higher by 16,000. The strong showing indicates the US economy is still strong, despite tariffs and deportations.
There are signs of underlying weakness, as private sector employers added the fewest new jobs since October 2024, when two hurricanes hit, putting thousands out of work. Government layoffs accounted for a loss of 7,000 positions last month. The jobs number is likely to keep the Fed on its wait-and-see position on rate cuts at the next meeting.
Federal Reserve Chair Jerome Powell spoke last week, he confirmed the Fed would have cut rates already if not for the President’s tariff plan. The market is predicting a 76 percent chance rate will not go down at the July meeting; Powell has reiterated that cuts will be data driven. He wants to “deliver an economy that has price stability, maximum unemployment, financial stability.”