Job growth proved better than expected in June, boosted by government hiring, as the labour market showed surprising resilience and likely took a July interest rate cut off the table. The unemployment rate fell to 4.1pc, the lowest since February and against a forecast for a slight increase to 4.3pc. Though the jobless rates fell, it was due largely to a decrease in those working or looking for jobs. Along with the solid payroll gains and fall in the unemployment rate, average hourly earnings increased 0.2pc for the month and 3.7pc from a year ago, indicating little upward pressure on wage-related inflation. Government employment posted a large gain, leading all categories with an increase of 73,000 due to solid boosts in state and local hiring, particularly in education-related jobs, which rose by 40,000. The federal government, which is still feeling the impact of cuts from Elon Musk`s so-called Department of Government Efficiency, lost 7,000.

(Adapted from `US Payrolls increased By 147000 in June, More Than Expected, by Jeff Cox, published on July 3, 2025, by CNBC)