Government hiring has surged over the past year as private-sector hiring has faltered. The private sector added a softish 136,000 in June.


The U.S. created a solid 206,000 new jobs in June, but the latest employment report also showed signs of deterioration in the labor market that could influence the Federal Reserve to cut interest rates soon.

The increase in new jobs last month slightly exceeded the 200,000 forecast of economists polled by The Wall Street Journal.

Yet the government also said 111,000 fewer jobs were created in May and April than originally reported.

What's more, one-third of the new hires in June were in government. Private-sector employment rose by a softish 136,000.

The unemployment rate, meanwhile, rose to 4.1% for the first time since November 2021. The jobless rate had been as low as 3.4% just 14 months ago.

Wages rose again in June, but the increase in worker pay over the past year slowed to 3.9% from 4.1%. That matches the lowest level in three year and is likely to reassure the Fed that wage growth is slowing to more sustainable levels.