U.S. economy adds 206,000 jobs in June, unemployment rate at 4.1%

The U.S. economy continued to show signs of resilience in June, adding 206,000 jobs while the unemployment rate remained relatively steady at 4.1%, according to the latest report from the U.S. Bureau of Labor Statistics.

The job gains, which were in line with the average monthly increase of 220,000 over the past year, were primarily driven by growth in government, health care, social assistance, and construction sectors.

"Total nonfarm payroll employment increased by 206,000 in June, and the unemployment rate changed little at 4.1 percent," the Bureau of Labor Statistics stated in its report.

Government employment saw a significant boost, adding 70,000 jobs in June, surpassing the average monthly gain of 49,000 over the prior 12 months. Local government, excluding education, added 34,000 jobs, while state government employment increased by 26,000.

The healthcare sector continued its growth trajectory, adding 49,000 jobs in June, although this was lower than the average monthly gain of 64,000 over the previous year. Ambulatory healthcare services and hospitals each added 22,000 jobs.

Social assistance employment rose by 34,000, with individual and family services accounting for 26,000 of those jobs. The construction industry also showed strength, adding 27,000 jobs, exceeding its average monthly gain of 20,000 over the past year.

However, some sectors experienced little change or slight declines. Retail trade employment dipped by 9,000 jobs, while professional and business services saw a small decrease of 17,000 jobs. Notably, temporary help services declined by 49,000 jobs in June and have decreased by 515,000 since its peak in March 2022.

The report also highlighted changes in key labor market indicators. The labor force participation rate remained relatively stable at 62.6%, while the employment-population ratio held steady at 60.1%.

Long-term unemployment, defined as those jobless for 27 weeks or more, saw an increase of 166,000 to 1.5 million in June. This figure is up from 1.1 million a year earlier, with long-term unemployed now accounting for 22.2% of all unemployed individuals.

Wage growth showed modest gains, with average hourly earnings for all employees on private nonfarm payrolls increasing by 10 cents, or 0.3%, to $35.00. Over the past 12 months, average hourly earnings have risen by 3.9%.

The report also included downward revisions for April and May employment figures. April's job gains were revised from 165,000 to 108,000, while May's were adjusted from 272,000 to 218,000, resulting in 111,000 fewer jobs than previously reported for those two months combined.

As the U.S. economy continues to navigate post-pandemic challenges and inflationary pressures, this latest employment report suggests a labor market that remains relatively robust, albeit with some signs of moderation in certain sectors.