Education and the health care industry created the most positions
of ConsumerAffairsJuly 3, 2025
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U.S. economy added 147,000 jobs in June, with growth in state government and healthcare.
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Unemployment rate held steady at 4.1%, with long-term unemployment and discouraged workers on the rise.
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Wage growth continued, but average workweek declined slightly across sectors.
The U.S. economy added 147,000 jobs in June and the unemployment rate held steady at 4.1%. The Bureau of Labor Statistics report showed job creation remained in line with the previous 12-month average. Job gains were primarily concentrated in state government and health care, as other sectors of the economy showed little movement.
Government employment was a primary driver of June’s job growth, adding 73,000 jobs overall. State government employment increased by 47,000, with 40,000 of those in education.
Local government education also saw a smaller but steady increase of 23,000 positions. However, the federal government continued its downward trend, losing 7,000 jobs, bringing the total decline to 69,000 since Januarys peak.
Health care has carried the job market over the last several months. In June, it added 39,000 jobs, mostly at hospitals (+16,000) and nursing and residential care facilities (+14,000). Social assistance employment also ticked upward by 19,000, primarily due to growth in individual and family services.
Little growth in other areas of the economy
Other areas of the economy suggest softness. Manufacturing, retail trade, professional and financial services and warehousing showed little to no employment gains. Other key metrics also suggest underlying labor market softness.
The number of long-term unemployed those jobless for 27 weeks or more increased by 190,000 to reach 1.6 million. This group now comprises 23.3% of the total unemployed population.
The labor force participation rate was little changed at 62.3%, and the employment-population ratio remained flat at 59.7%. A concerning uptick was noted among discouraged workers those who want work but believe no jobs are available rising by 256,000 to 637,000. The number of individuals marginally attached to the labor force also rose by 234,000 to 1.8 million.
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