Jobs report: U.S. labor market beats expectations with healthy rate of hiring in June

The US labor market added 147,000 jobs in June, exceeding economists' expectations, and the unemployment rate decreased to 4.1%. Despite uncertainty surrounding President Trump's economic policies, the job market has shown surprising resilience. However, hiring has slowed down significantly from 2021-2023, with an average of 124,000 jobs added per month this year. The Federal Reserve's interest rate hikes in 2022 and 2023 contributed to the deceleration in hiring. A recent survey by ADP found that private companies cut 33,000 jobs in June, citing a hesitancy to hire and replace departing workers. Trump's tariffs and erratic policy rollout have left businesses uncertain and reluctant to make decisions. The tariffs are also expected to raise prices and reduce competition, ultimately hurting the economy. Additionally, Trump's assault on the federal bureaucracy and deportations may start to impact the job market, with federal jobs expected to drop by 20,000 in June. The labor force also experienced a significant drop in May, with 625,000 fewer people working or looking for work. Despite these challenges, the economy has not collapsed, and companies are still hiring, albeit at a more modest pace.