The US labour market remained robust in June 2025, adding 147,000 jobs, surpassing forecasts of 120,000, according to the Department of Labour. The unemployment rate edged down from 4.2% to 4.1%, offering reassurance about the economy’s strength despite ongoing concerns around President Donald Trump’s trade tariffs.

Job growth was supported by hiring in the state government and healthcare sectors, while the federal government continued to downsize, losing 7,000 positions in June. Federal employment has now declined by 69,000 since peaking in January 2025, raising questions about the impact of public-sector restructuring on long-term job stability.

Wage growth, however, is beginning to ease. Monthly earnings rose by 0.2% in June, down from 0.4% in May. On an annual basis, wages increased by 3.7%, a slowdown from the previous month. This wage moderation suggests employers may be becoming cautious amid policy-driven economic uncertainty.

Analysts are closely watching the potential impact of upcoming tariff hikes, which could prompt employers to delay hiring or halt expansions. While recent data from payroll processor ADP signalled job losses in the private sector, the official figures paint a more stable picture, for now.

The mixed signals come at a time when the Federal Reserve is expected to hold interest rates steady, assessing whether Trump’s evolving tariff strategy will disrupt labour market momentum or trigger broader economic drag in the months ahead.>