Jobs report: Economy added 147,000 jobs in June; unemployment at 4.1%
The unemployment rate fell from 4.2% to 4.1%, the Labor Department said Friday.
Ahead of the report, economists surveyed by Bloomberg had estimated 110,000 jobs were added in June.
How much are wages increasing?
Average hourly earnings rose 8 cents to $36.30, nudging the yearly from 3.9% to 3.7%.
Wage growth has been slowing after soaring as a result of pandemic-related worker shortages. It's broadly aligned with the Federal Reserve's 2% inflation goal, Oxford Economics has said.
Is the job market growing or shrinking?
Average monthly job growth has slowed from a sturdy 168,000 in 2024 to about 125,000 this year. Employers frustrated by labor shortages during the pandemic have been reluctant to lay off lots of workers, limiting the drop-off.
How do tariffs affect employment?
But hiring has fallen below pre-COVID-19 levels. A post-pandemic burst of catch-up hiring has faded and uncertainty about tariffs has led many businesses to wait for the effects of the duties on inflation and consumer spending before adding more staffers.
Trump's 90-day pause on the high-double-digit duties he slapped on dozens of countries is set to expire July 9. In May, the U.S. agreed to slash levies on Chinese imports from 145% to a still-elevated 30%.
And a base 10% tariff remains in effect on most imports, along with a 50% tax on steel and aluminum shipments and a 25% levy on imported cars and many goods from Canada and Mexico.
Other administration policies are also starting to weigh on job growth.
How many federal workers have lost their jobs in 2025?
Goldman Sachs estimated the federal government lost 15,000 jobs last month, though Oxford Economic figured the losses were offset by state and local government gains.
All told, more than 260,000 federal workers have been fired, taken buyouts or retired early this year. The monthly jobs reports have tallied just 59,000 losses so far because many employees are on administrative leave pending court challenges, according to Capital Economics.
How will Trump's immigration policies affect the economy?
Besides cracking down on Southern border crossings, the administration has canceled or declined to renew work permits for hundreds of thousands of migrants, EY-Parthenon estimates.
In May, federal officials ended so-called Temporary Protected Status for 350,000 Venezuelan migrants, Goldman Sachs said in research note. Although the move is being challenged in court, Goldman estimates many employers became reluctant to employ the immigrants or placed them on leave, reducing June job growth by about 25,000.
At the same time, to reduce the chances of being deported, fewer immigrants who lack permanent legal status are searching for work, Morgan Stanley said.
What was the ADP report?
ADP, a payroll processor, estimated Wednesday the private sector shed 33,000 jobs in June, the first job losses it has reported in more than two years.
'We expect the unemployment rate to edge higher in the second-half of 2025 as the labor market softens in response to slower growth, with the full force of tariffs working through the economy,' economist Nancy Vanden Houten of Oxford Economics wrote in a note to clients.
Barclays expects average monthly job gains to slow to about 75,000 by the fourth quarter.
But economists say the hiring pullback will likely be roughly matched by a more slowly growing labor supply due to the immigration crackdown, keeping the unemployment rate from rising sharply.
Contributing: Reuters
This story has been updated with new information.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


USA Today
23 minutes ago
- USA Today
Donald Trump calls bankers 'Shylocks,' drawing criticism for antisemitic term
The president made the remark at a rally launching his yearlong celebration of America's 250th birthday. He said he '"heard" it was antisemitic. WASHINGTON – President Donald Trump described some bankers as 'shylocks,' a term widely seen as an antisemitic slur, at a July 3 Iowa rally kicking off his yearlong celebration of America's 250th birthday. When asked by reporters about it later that evening, Trump said he has 'never heard that' the word is considered antisemitic. "The meaning of Shylock is somebody that's a money lender at high rates,' Trump said after disembarking from Air Force One. 'You view it differently. I've never heard that." Anti-bigotry groups were quick to condemn Trump, saying the president has a long history of making antisemitic remarks and should have known better. 'Shylock is among the most quintessential antisemitic stereotypes,' said Amy Spitalnick, CEO of the nonpartisan Jewish Council for Public Affairs and an expert on antisemitism and extremism. 'This is not an accident,' Spitalnick said in a post on X. 'It follows years in which Trump has normalized antisemitic tropes and conspiracy theories — and it's deeply dangerous.' The Anti-Defamation League, which combats antisemitism and racism worldwide, said the term 'evokes a centuries-old antisemitic trope about Jews and greed that is extremely offensive and dangerous.' 'President Trump's use of the term is very troubling and irresponsible,' the ADL said, also in a post on X. 'It underscores how lies and conspiracies about Jews remain deeply entrenched in our country. Words from our leaders matter and we expect more from the President of the United States.' 'Shylocks and bad people' who 'destroyed a lot of families' Trump's remark came at a campaign-style rally speech at the Iowa State Fairgrounds in Des Moines for a "Salute to America Celebration." Much of his speech celebrated the passage of his massive budget reconciliation bill earlier in the day. 'No death tax. No estate tax. No going to the banks and borrowing from, in some cases, a fine banker — and in some cases, shylocks and bad people… they destroyed a lot of families,' Trump said. 'But we did the opposite,' Trump said, before describing the budget bill passed along party lines in the House and Senate. The term Shylock dates back centuries. In William Shakespeare's 'The Merchant of Venice,' the main antagonist was a character named Shylock, a Venetian Jewish moneylender portrayed as greedy, ruthless and charging high interest rates on loans. Joe Biden used the term too, then apologized Then-Vice President Joe Biden also used the term in 2014, describing unscrupulous bankers catering to American troops overseas as 'these Shylocks who took advantage of these women and men.' 'Shylock represents the medieval stereotype about Jews and remains an offensive characterization to this day,' Abraham Foxman, the ADL's national director said at the time. 'The Vice President should have been more careful.' Foxman later announced that Biden had reached out to him by phone to apologize. 'Not only has he been a stalwart against anti-Semitism and bigotry, but he has the courage and forthrightness to admit a mistake and use it as an opportunity to learn and to teach others about the harmful effects of stereotypes,' Foxman said of Biden. 'Clearly there was no ill-intent here,' Foxman added, 'but Joe and I agreed that perhaps he needs to bone up on his Shakespeare.' Biden also issued a public apology. "Abe Foxman has been a friend and advisor of mine for a long time," Biden said in a statement. "He's correct, it was a poor choice of words." Trump's history of remarks called antisemitic Trump has portrayed himself as a staunch advocate for Jews. Since retaking office, he has led an aggressive campaign to root out antisemitism at Harvard and other high-profile American universities – a move that some critics said curbs freedom of speech by those criticizing Israel for its war in Gaza. Trump has a long history of making statements that Jewish leaders, historians and civil rights organizations have interpreted as reinforcing antisemitic stereotypes, including jokes about being cheap and aggressive in business and accusations of them being primarily loyal to Israel. He also has associated with known antisemites. In 2015, he told the Republican Jewish Coalition, "You just like me because my daughter happens to be Jewish," and "I'm a negotiator like you folks; we're negotiators." During his first campaign for president in 2016, Trump tweeted an image of Democratic rival Hillary Clinton superimposed on dollar bills with a six-pointed star, widely interpreted as a Star of David. The ADL called it 'blatantly antisemitic.' Trump also has said any Jew who votes for Democratic "hates their religion" and "should have their head examined" because he has been so supporitive of Israel, which he has referred to as "your country" when addressing a Jewish audience. And in November 2022, Trump hosted far-right extremist and Holocaust denier Nick Fuentes – and Ye, the rapper formerly known as Kanye West – at his Mar‑a‑Lago club. Both West and Fuentes were avid supporters of Trump who repeatedly had made antisemitic remarks. Fuentes in particular is a prominent figure among the far-right, peddling white nationalist ideas and openly promoting antisemitic and racist rhetoric. 'Bigotry, hate, and antisemitism have absolutely no place in America - including at Mar-A-Lago," Biden administration White House spokesman Andrew Bates told CNN in a statement. "Holocaust denial is repugnant and dangerous, and it must be forcefully condemned." In response to heavy criticism, Trump said West 'called me to have dinner at Mar-a-Lago. Shortly thereafter, he unexpectedly showed up with three of his friends, whom I knew nothing about."

USA Today
23 minutes ago
- USA Today
Russia pounds Kyiv with largest drone attack, hours after Trump-Putin call
KYIV, July 4 (Reuters) - Russia pummelled Kyiv with the largest drone attack of the war, killing one person, injuring at least 23 and damaging buildings across the capital hours after President Donald Trump spoke to Russia's Vladimir Putin, officials said on Friday. Air raid sirens, the whine of kamikaze drones and booming detonations reverberated from early evening until dawn as Russia launched what Ukraine's Air Force said was a total of 539 drones and 11 missiles. Families huddled in underground metro stations for shelter and acrid smoke hung over the city centre. Kyiv's military administration chief said on Friday afternoon a body had been found in the wreckage of one of the strike sites. Outside a high-rise apartment block damaged by a drone, residents stood around surveying the scene as the clean-up job began. Some cried. Others looked on silently. "I woke up to the sound of explosions, first the Shahed drones started buzzing, and then the explosions began," said 40-year-old resident Maria Hilchenko. "Then people started screaming outside. The explosions from the Shaheds kept coming." Shahed drones are an Iranian design, a variant of which is now manufactured in Russia. More: Trump, Putin hold call after US pauses some weapons transfers to Ukraine President Volodymyr Zelenskiy called the attack "deliberately massive and cynical", noting the first sirens blared as news came in of Putin and Trump's call. Later on Friday Zelenskiy spoke to Trump and the pair agreed to work on increasing Kyiv's capability to "defend the sky". He added they discussed joint defence production, as well as joint purchases and investments. The U.S. has paused some deliveries of missiles amid concerns about low stockpiles. Kyiv officials said the attack damaged about 40 apartment blocks, passenger railway infrastructure, five schools and kindergartens, cafes and many cars in six of Kyiv's 10 districts. Poland said the consular section of its embassy was damaged in central Kyiv, adding that staff were unharmed. More: Russian use of chemical weapons against Ukraine 'widespread', Dutch defense minister says Ukrainian Foreign Minister Andrii Sybiha said a Chinese component had been found in one of the Shahed drones attacking Kyiv, adding it had been found shortly after China's consulate in the southern city of Odesa suffered minor damage in a separate strike. "What an irony," Sybiha wrote on X. Russian airstrikes on Kyiv have intensified in recent weeks and included some of the deadliest assaults of the war on the city of three million people. Russia's Defence Ministry said drone factories, a military airfield and an oil refinery were among targets it struck in Kyiv with what it called high-precision weapons. Ukraine did not give details of any militarily valuable targets. CALL FOR SANCTIONS Trump said that the call with President Putin on Thursday resulted in no progress at all on efforts to end the war, and the Kremlin reiterated that Moscow would keep pushing to solve the conflict's "root causes". The decision by Washington to halt some shipments of critical weapons to Ukraine prompted warnings by Kyiv that the move would weaken its ability to defend against intensifying airstrikes and battlefield advances. Germany said it is in talks on buying Patriot air defence systems to bridge the gap. On Friday, Zelenskiy called for increased pressure on Moscow to change its "dumb, destructive behavior". More: Russia continues record-setting aerial attacks, US cuts off arms shipments to Ukraine "For every such strike against people and human life, they must feel appropriate sanctions and other blows to their economy, their revenues, and their infrastructure," he said. Ukraine's Air Force said it destroyed 478 of the air weapons Russia launched overnight. Airstrikes were recorded in eight locations, with nine missiles and 63 drones, it added. Social media videos showed people running to seek shelter, firefighters fighting blazes in the dark and ruined buildings with windows and facades blown out. Both sides deny targeting civilians in the war that Russia launched with its full-scale invasion in February 2022. Thousands of civilians have been killed in the conflict, the vast majority of them Ukrainian. Many more soldiers are believed to have been killed on the front line, but neither side releases military casualty figures. Late on Thursday, Russian shelling killed five people in and near the eastern Ukrainian city of Pokrovsk, Ukraine said. (Reporting by Olena Harmash, Pavel Polityuk, Max Hunder, Valentyn Ogirenko, Sergiy Karazy and Frank Jack Daniel; Writing by Ronald Popeski, Lidia Kelly and Frank Jack Daniel; Editing by Stephen Coates, Raju Gopalakrishnan, Alexandra Hudson and Sharon Singleton)


Bloomberg
23 minutes ago
- Bloomberg
Carmakers Seek to Offset Tariffs as EU-US Trade Talks Near End
Some European Union carmakers and capitals are pushing for an agreement with the US that would allow for tariff relief in return for increasing investments in the US, according to people familiar with the matter. The EU has until July 9 to clinch a trade arrangement with Donald Trump before tariffs on nearly all of the bloc's exports to the US jump to 50%. The US president has imposed tariffs on almost all its trading partners, saying he wanted to bring back domestic manufacturing, needed to pay for a tax-cut extension and stop other countries from taking advantage of the US.