The June 2025 unemployment report from the Bureau of Labor Statistics shows that the U.S. unemployment rate dropped to 4.1%, down from 4.2% in May. This rate was lower than economists’ forecasts, which predicted a rise to 4.3%. Nonfarm payrolls increased by 147,000 jobs in June, surpassing the predicted gain of 110,000 jobs.
Job gains were primarily seen in state government and health care sectors. State government hiring increased, and the health care sector added approximately 62,000 jobs. The leisure and hospitality sector added 48,000 jobs, and social assistance contributed 16,000 jobs. In contrast, the federal government sector lost 22,000 jobs.
Regional data shows that South Dakota had the lowest unemployment rate at 1.8%, while Nevada had the highest at 5.6%. The average monthly nonfarm payroll gain for the first five months of 2025 was 124,000, which is lower than the 168,000 average in 2024, indicating a slowdown in hiring momentum.
The Federal Reserve has indicated that the current labor market data may influence the timing of any future interest rate changes.