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June Jobs Gain Masked by Public-Sector Surge and Private Hiring Slump

Strong government and education hiring undercuts private-sector weakness, clouding Federal Reserve rate plans.

A now hiring and help wanted sign is posted in Morrisville, Pa., Monday, June 9, 2025. (AP Photo/Matt Rourke)
A job seeker leaves the job fair for airport related employment at Logan International Airport in Boston, Massachusetts, U.S., December 7, 2021.   REUTERS/Brian Snyder/File Photo
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Overview

  • The U.S. economy added 147,000 jobs in June, exceeding forecasts of roughly 110,000 and lowering unemployment to 4.1%.
  • Nearly half of the payroll increase came from government roles, driven by a 63,000-job seasonal boost in state and local education.
  • Private-sector payrolls rose by just 74,000, missing expectations and highlighting weakness outside healthcare and education.
  • Native-born employment surged by 830,000 even as foreign-born employment fell by 348,000, signaling a realignment in labor supply.
  • The strong headline data lifted the S&P 500 and Nasdaq to record highs while leaving the Federal Reserve uncertain about timing for rate cuts.