US Job Growth Beats Expectations, Jobless Rate Falls to 4.1%

U.S. non-farm payrolls rose by 147,000 in June 2025, surpassing market expectations of a 111,000 increase and signaling continued resilience in the labor market. The figure also exceeds the revised 144,000 jobs added in May (initially reported as 139,000), according to data from the Bureau of Labor Statistics.

The unemployment rate fell to 4.1%, down from 4.2% in May and below the forecasted 4.3%, further indicating improvement in employment conditions.

However, private sector hiring underwhelmed: only 74,000 jobs were created in June, falling short of the expected 105,000 and well below the revised 137,000 gain in May.

Manufacturing jobs declined by 7,000, slightly more than the 5,000 drop anticipated, matching the revised loss recorded the previous month.

Average hourly earnings rose by 0.2% month-over-month and 3.7% year-over-year, missing expectations of +0.3% m/m and +3.9% y/y. In May, wages had increased by 0.4% on the month and 3.8% annually.

Wage growth remains a key metric watched by the Federal Reserve for its implications on inflation and monetary policy.