Close Menu
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
What's Hot

US dollar boosted by strong employment data

July 3, 2025

Cramer looks at how Meta and CrowdStrike crushed Wall Street naysayers

July 3, 2025

Copper declines on profit-taking as investors assess US interest rate path

July 3, 2025
Facebook X (Twitter) Instagram
Thursday, July 3
Facebook X (Twitter) Instagram
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
World Economist – Global Markets, Finance & Economic Insights
Home » US economy surpasses expectations to add 147,000 jobs
USA

US economy surpasses expectations to add 147,000 jobs

adminBy adminJuly 3, 2025No Comments3 Mins Read
Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
Share
Facebook Twitter Pinterest Email Copy Link
Post Views: 3


Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

The US economy added 147,000 jobs in June, breaking through expectations and leading investors to scale back their bets on interest rate cuts.

Despite uncertainty over Donald Trump’s trade and immigration policies, Thursday’s figure from the Bureau of Labor Statistics surpassed both the upwardly revised 144,000 posts added in May and the 110,000 predicted by economists polled by Bloomberg.

The unemployment rate fell slightly to 4.1 per cent and the April jobs increase was revised higher to 158,000. 

The unexpectedly strong figures will ease pressure on the US Federal Reserve to cut interest rates, despite the US president’s repeated calls for the central bank to do so.

The dollar climbed after the data publication as investors bet the Fed will lower rates more slowly than previously thought. The currency was up 0.5 per cent against a basket of rivals.

Some content could not load. Check your internet connection or browser settings.

Traders are now betting that there is a roughly 5 per cent chance of the US central bank lowering borrowing costs this month, compared with about 25 per cent before the jobs data.

“The numbers were much, much higher than expected,” said Andy Brenner, head of international fixed income at NatAlliance Securities.

“This takes a July cut off the table,” he added. “Even with a massive deceleration in [the consumer price index], you will not see a cut from the Fed in July. Even September now is somewhat in question.”

Fed chair Jay Powell has faced relentless pressure from Trump to lower borrowing costs. The president this week shared a handwritten note he had written to Powell saying his reluctance to cut rates had “cost the USA a fortune”.

On Tuesday, Powell indicated a July cut was not “off the table”, in an apparent reversal on his previous position that borrowing costs should be kept on hold until the autumn. 

But below the headline figures, analysts sounded a more cautious note over the lack of turnover in the job market. The small drop in the unemployment rate was largely driven by people leaving the labour market rather than finding work.

“The household survey really shows a labour market that has very little churn,” said Diane Swonk at KPMG. “There’s a sense of a frozen jobs market and we’re not through the ice. The unemployment rate fell, but it fell for the wrong reasons.”

The two-year Treasury yield, which moves with interest rate expectations and inversely to prices, increased 0.09 percentage points on Thursday morning to 3.87 per cent.

The S&P 500 rose 0.4 per cent shortly after the opening bell in New York.

The rise in the headline employment figure came largely from an increase in healthcare jobs and an unexpected jump in those employed by US state governments after minimal growth over the past two years.

Federal government employment continued to decline in the wake of the cost-cutting drive led by Elon Musk, with jobs now down by 69,000 since January.

Florian Ielpo, head of macro at Lombard Odier Investment Managers, said the “bump” in state government employment “explains a significant portion of the increase above the consensus number”.

“So globally, not a bad report, but probably not as strong as initially suggested from the first read,” he said.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
admin
  • Website

Related Posts

USA

US tariff receipts surge in Donald Trump’s trade war

July 3, 2025
USA

House of Representatives approves ‘big beautiful bill’ in victory for Donald Trump

July 3, 2025
USA

Full EU-US trade deal ‘impossible’ before deadline, says Ursula von der Leyen

July 3, 2025
USA

What will come out of the Fed’s latest internal review?

July 3, 2025
USA

China hits out at Donald Trump’s trade deal with Vietnam

July 3, 2025
USA

South Korea doubts it will hit Donald Trump’s deadline for trade deal

July 3, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

Microsoft ‘ends’ operations in Pakistan after 25 years – Technology

July 3, 2025

SBP reserves hit nearly 40-month high on multilateral, commercial loans – Markets

July 3, 2025

Over 12mn mobile handsets assembled in Pakistan in Jan-May – Technology

July 3, 2025

FIA arrests former RAILCOP officials over Rs1.17bn fake bank guarantees scam – Pakistan

July 3, 2025
Latest Posts

PSX hits all-time high as proposed ‘neutral-to-positive’ budget well-received by investors – Business

June 11, 2025

Sindh govt to allocate funds for EV taxis, scooters in provincial budget: minister – Pakistan

June 11, 2025

US, China reach deal to ease export curbs, keep tariff truce alive – World

June 11, 2025

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Recent Posts

  • US dollar boosted by strong employment data
  • Cramer looks at how Meta and CrowdStrike crushed Wall Street naysayers
  • Copper declines on profit-taking as investors assess US interest rate path
  • US tariff receipts surge in Donald Trump’s trade war
  • House of Representatives approves ‘big beautiful bill’ in victory for Donald Trump

Recent Comments

No comments to show.

Welcome to World-Economist.com, your trusted source for in-depth analysis, expert insights, and the latest news on global finance and economics. Our mission is to provide readers with accurate, data-driven reports that shape the understanding of economic trends worldwide.

Latest Posts

US dollar boosted by strong employment data

July 3, 2025

Cramer looks at how Meta and CrowdStrike crushed Wall Street naysayers

July 3, 2025

Copper declines on profit-taking as investors assess US interest rate path

July 3, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Archives

  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • June 2024
  • October 2022
  • March 2022
  • July 2021
  • February 2021
  • January 2021
  • November 2019
  • April 2011
  • January 2011
  • December 2007
  • July 2007

Categories

  • AI & Tech
  • Asia
  • Banking
  • Business
  • Business
  • China
  • Climate
  • Computing
  • Economist Impact
  • Economist Intelligence
  • Economy
  • Editor's Choice
  • Europe
  • Europe
  • Featured
  • Featured Business
  • Featured Climate
  • Featured Health
  • Featured Science & Tech
  • Featured Travel
  • Finance & Economics
  • Health
  • Highlights
  • Markets
  • Middle East
  • Middle East & Africa
  • Middle East News
  • Most Viewed News
  • News Highlights
  • Other News
  • Politics
  • Russia
  • Science
  • Science & Tech
  • Social
  • Space Science
  • Sports
  • Sports Roundup
  • Tech
  • This week
  • Top Featured
  • Travel
  • Trending Posts
  • Ukraine Conflict
  • Uncategorized
  • US Politics
  • USA
  • World
  • World & Politics
  • World Economy
  • World News
© 2025 world-economist. Designed by world-economist.
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.