The US job market presented a robust picture for the second consecutive month, with a historically low unemployment rate and significant job gains. However, closer analysis reveals blemishes that could mar the outlook.
President Donald Trump’s economic policies appear to be a common thread behind several concerns. The June jobs report beat expectations with 147,000 net job gains, but the average duration of unemployment rose to 23 weeks, and the share of unemployed workers who have been out of a job for 27 weeks or longer increased to 23.3%.
Manufacturing employment declined for the second consecutive month, losing 7,000 jobs, which may be linked to Trump’s tariffs. The sector’s performance is particularly concerning as it is a key priority area for the president.
The June report also shows that job growth was not widespread, with sectors most affected by tariffs experiencing significant gains. Additionally, employees worked fewer hours, potentially signaling weakening labor demand.
Furthermore, the unemployment rate for Black Americans rose to 6.8%, its highest rate since January 2022. This increase is typically an indicator of economic weakness but may also be volatile due to month-to-month fluctuations.
Women left the workforce in greater numbers than men since January, with a net loss of 338,000 women compared to a gain of 183,000 men. Wage growth gains have slowed, increasing by only 0.2% in June and bringing the annual rate to 3.7%.
The US job market continues to defy expectations, but uncertainty remains due to Trump’s self-imposed July 9 deadline for key trading partners to reach a deal on tariffs. Businesses and workers remain frozen in a state of uncertainty as Congress debates Trump’s domestic policy bill.
Source: https://edition.cnn.com/2025/07/03/economy/hidden-bad-news-june-jobs-report