Jobs report exceeds expectations but unemployment rise signals cooling labor market
What caused the U.S. unemployment rate to rise to 4.1 percent?
The U.S. unemployment rate rose to 4.1 percent due to a combination of factors, including the addition of more jobs than expected in June, government hiring accounting for over a third of the payrolls gain, and other signs of a cooling labor market5. Job gains in April and May were also revised downward by over 100,000 jobs.
Why were job gains for April and May revised downward?
Job gains for April and May were revised downward due to a combination of factors, including updated data and methodology. The Bureau of Labor Statistics (BLS) regularly revises its employment estimates as new information becomes available, which can lead to adjustments in the reported job gains. In this case, the revisions reflect a weaker job market than initially reported, but still indicate a steady labor market overall.
How did government hiring impact June's job figures?
In June, government hiring accounted for more than a third of the 206,000 new jobs added, contributing significantly to the overall job growth. This was followed by job gains in sectors such as health care, social assistance, and construction.