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June US Nonfarm Payrolls Rise More Than Expected, Unemployment Rate Falls

BY MT Newswires | ECONOMIC | 07/03/25 09:07 AM EDT

09:07 AM EDT, 07/03/2025 (MT Newswires) -- The June employment report showed nonfarm payrolls rose by 147,000, above the 106,000 jobs increase expected in a survey compiled by Bloomberg as of 7:30 am ET, while May payrolls saw an upward revision to a 144,000 increase and April payrolls were revised up to a 158,000 increase, for a net upward revision of 16,000 jobs.

Private payrolls increased by 74,000 in June after a 137,000 increase in May, below the increase of 100,000 private jobs expected. Government payrolls increased by 73,000, health care payrolls increased by 58,600 and leisure and hospitality jobs were up 20,000.

The unemployment rate fell to 4.1% in June from 4.2% in May, compared with a 4.3% rate expected, while the labor force participation rate fell to 62.3% from 62.4% in the previous month and the size of the labor force contracted.

Hourly earnings increased by 0.2%, smaller than the 0.3% gain expected, and following a 0.4% gain in May. Hourly earnings were up 3.7% year-over-year.

The average workweek declined to 34.2 hours from 34.3 hours in May, below the 34.3 hours expected.

The monthly employment report released by the Bureau of Labor Statistics consists of two separate surveys and is considered the most important data release for the month. The survey of businesses measures the levels of employment and wages and the length of the average workweek, broken down by industry.

The survey of households measures the number of people working or looking for work, the unemployment rate, those that have left the workforce and reasons for part-time work.

Market reaction can be mixed, particularly when the two surveys disagree. A strong increase in employment or a decline in the unemployment rate is generally a positive for stocks as sign of a strong US economy, but bonds would react negatively to the same news, particularly if wages rise sharply at the same time.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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