Job growth was higher than expected in June, according to a federal report Thursday that showed the labor market beating milder forecasts.
The Bureau of Labor Statistics said nonfarm payrolls increased by 147,000. Wall Street had been estimating a number closer to 110,000.
The unemployment rate remained steady at 4.1%.
There were job gains in state government and health care, while the federal government continued to shed positions as President Trump trimmed the workforce and spending in Washington.
Employment in state government increased by 47,000 — mostly in education, at 40,000 jobs — and local governments added 23,000 education jobs.
The federal government lost 7,000 jobs for the month, meaning federal employment is down 69,000 since a peak in January.
Job growth remained robust despite a private-company report one day earlier showing a contraction in hiring for June.
It also defied worries about the economy writ large, as Mr. Trump pursues an aggressive economic agenda of tariffs, deregulation and tax cuts.
“Hats off to President Trump because this three-legged stool of his has really been powerful: The trade, taxes and regulations together. It’s all about Jobs! Jobs! Jobs!” Alfredo Ortiz, CEO of the Job Creators Network, said on Fox Business.
Mr. Trump said major legislation in Congress will supercharge the economy, though the Federal Reserve is skittish about cutting interest rates because of possible tariff-related inflation.
Mr. Trump and his team are negotiating with dozens of countries to set tariffs, which are duties paid on goods made elsewhere and brought into the U.S.
Wall Street stocks soared after the report, with the S&P 500 and Nasdaq reaching record highs.
“For the FOURTH month in a row, jobs numbers have beat market expectations with nearly 150,000 good jobs created in June,” White House press secretary Karoline Leavitt said in an X post. “The economy is booming again, and it will only get better when the One, Big, Beautiful Bill is passed and implemented.”
Ms. Leavitt also said native-born Americans accounted for the job increases while foreign-born employment had fallen significantly since January.
“American-born workers have accounted for ALL of the job gains since President Trump took office and wages continue to rise,” she said.
Some analysts saw weaknesses in the report.
Heather Long, the chief economist at Navy Federal Credit Union, said private-sector job creation was concentrated in two industries and the labor participation rate was 62.3%, or the lowest since December 2022.
“Bottom line: It’s hard to find a job right now outside of healthcare and education,” she wrote on X. “And the labor force is shrinking (likely due to Baby Boomers retiring and some migrants leaving).”
