Jobs report June 2025:lost 33,000 jobs

Jobs report June 2025

 Instead of adding more jobs, private companies actually had 33,000 fewer jobs last month. This was a surprise because experts had expected them to add 100,000 new jobs.

This is the first time in over a year (since March 2023) that the number of jobs has gone down.

Also, the number of jobs added in the previous month, May, was even lower than first thought. It was updated to show only 29,000 new jobs were created, not 37,000.

What it is important?

The Jobs Report: A Monthly Snapshot of the Nation's Economic Health

The "jobs report," formally known as the Employment Situation Summary, is a crucial monthly economic indicator in the United States that provides a comprehensive overview of the labor market. Released by the U.S. Bureau of Labor Statistics (BLS), it is one of the most anticipated and influential economic data releases, closely watched by economists, investors, policymakers, and the general public

Jobs report now Non-Farm Employment Change

This Thursday, we'll get the main government report on jobs.

Experts think it will show that a good number of new jobs were created in June — about 110,000.

They also expect the unemployment rate (the percentage of people without jobs) to go up just a little, from 4.2% to 4.3%. However, because another recent jobs report was weak, some experts might lower their expectations.

On the same day, we’ll also learn how many people recently applied for unemployment benefits. Experts predict that number will be around 240,000.

All this news is coming out this week because it's a short work week for the U.S. stock market. Due to the July Fourth holiday, the market will close early on Thursday and stay closed on Friday.

Why jobs report is important?

Economic Bellwether: Employment is a fundamental driver of consumer spending, which accounts for a significant portion of economic activity. A strong jobs report, with robust job growth and a low unemployment rate, generally signals a healthy and expanding economy. Conversely, a weak report can indicate an economic slowdown or recession.

Federal Reserve Policy: The Federal Reserve's Federal Open Market Committee (FOMC) closely monitors the jobs report when making decisions about monetary policy, particularly regarding interest rates. A strong labor market with rising wages can lead to concerns about inflation, potentially prompting the Fed to raise interest rates. A weakening labor market may lead to rate cuts to stimulate economic growth.

Financial Market Impact: The data in the jobs report can significantly move financial markets. A stronger-than-expected report can boost stock prices as it suggests a healthy economy, while a weaker report can have the opposite effect. The bond market is also sensitive to the report's inflation implications.

Political Significance: The state of the labor market is a key political issue, and the monthly jobs report often becomes a focal point for discussions about the effectiveness of government economic policies.

Key Components of the Jobs Report:

 two parts of the jobs report:

1. The People Survey (Household Survey)

What it is: They contact about 60,000 families and ask if they are working.

What it tells us: This is how they figure out the main unemployment rate (the percentage of people who are trying to find a job but don't have one). It also gives details on who is jobless, broken down by age, gender, and race.

2. The Company Survey (Establishment Survey)

What it is: They ask over 140,000 businesses and government offices how many people are on their payroll.

What it tells us: This gives the most famous number: how many jobs were created or lost in the country that month. It also tells us if people's average hourly pay is going up or down and how many hours per week they are working.

the government uses two main surveys to get a full picture of the job market: