The Bureau of Labor Statistics has released its June 2025 Report, so let’s take a look at how employment fared over the last month.
The great news is:
- 147,000 jobs were added in June. This is right in line with the average monthly gain of 146,000 over the past year, signaling continued steady growth.
- State and local governments drove gains, with state government employment up by 47,000—mostly in education (+40,000)—and local government education adding 23,000 jobs.
- Wages are still climbing. Average hourly earnings rose by 0.2 percent in June and have increased by 3.7 percent over the past 12 months. Production and nonsupervisory employees saw a slightly higher monthly increase of 0.3 percent.
- Previous months were revised upward. Payroll gains for April and May were revised up by a combined 16,000 jobs.
The good news is:
- The unemployment rate stayed steady at 4.1 percent, remaining within the narrow 4.0–4.2 percent range it’s held since May 2024.
- Part-time employment for economic reasons and the number of people wanting a job but not in the labor force both held steady, indicating no major shifts in underemployment or hidden labor slack.
The bad news is:
- Federal government employment continued to decline, down by 7,000 in June and by 69,000 since January’s recent peak.
- Long-term unemployment ticked back up, increasing by 190,000 to 1.6 million, now accounting for 23.3 percent of all unemployed individuals.
- The labor force participation rate edged down slightly to 62.3 percent, and the employment-population ratio remained unchanged at 59.7 percent.
- The number of people marginally attached to the labor force and the number of discouraged workers increased, showing signs that more people are sitting on the sidelines or losing confidence in job prospects.
- The average workweek shrank a bit, edging down by 0.1 hour to 34.2 hours for all private nonfarm employees, with an even sharper decline of 0.2 hour for production and nonsupervisory employees.
Final Takeaway
June’s jobs report shows continued steady hiring in key sectors like state government, education, health care, and social services, along with modest but ongoing wage growth. However, federal government job losses, an uptick in long-term unemployment, and a dip in labor force participation remind us that the labor market remains a mixed bag. Employers in education, health care, and social assistance should continue to see healthy candidate pools, but it’s wise to watch labor force trends and be proactive about recruiting and retention strategies.