U.S. Job Market Update: June Shows Hiring Slowdown Amid Concentrated Growth in Healthcare and Government
The U.S. job market showed signs of slowing in June 2025, with employers adding 147,000 jobs and the unemployment rate edging down to 4.1%. However, job growth remains highly concentrated in the healthcare, social assistance, and government sectors, which accounted for 94% of new jobs that month. While headline numbers suggest stability, hiring outside these key areas has slowed, wage growth is decelerating, and workforce participation is declining slightly. Employers are increasingly adopting flexible staffing models to navigate uncertainty, while job seekers are advised to focus on in-demand skills and open roles in healthcare and education. Overall, the labor market remains resilient but signals a cautious, selective hiring environment amid cooling growth.