US National Unemployment Decreased Slightly to 4.1%
The US national unemployment rate decreased a little to 4.1%. Total nonfarm payroll employment increased by 147,000 in June, similar to the average monthly gain of 146,000 over the past 12 months. The total number of unemployed persons changed to 7.0 million. In June, 1.6 million people were considered long-term unemployed (those jobless for 27+ weeks); long-term accounts for 23.3% of all unemployed people. In June, the labor force participation rate decreased to 62.3%. and the employment-population ratio held at 59.7%.
Relevant Insights:
Job Growth Sectors:
The following industry sectors saw notable job change in June:
- Government (+73K)
- Federal Government (-7K)
- Healthcare (+39K)
- Social Assistance (+19K)
In June, job growth was led by government and healthcare sectors. Government growth was driven by state and local hiring, particularly in education. Healthcare growth can be attributed to job gains in hospitals and in nursing and residential care facilities.
Social assistance continues its upward trend, reflecting continued growth in individual and family services.
Wage Growth:
Average hourly earnings increased by 0.2% in June, maintaining a trend of wage growth over the past 12 months.
Educational Attainment:
- Unemployment for persons with less than a high school diploma increased to 6.0%. This sector remains the highest unemployment rate based on level of education.
- High school graduates with no college decreased slightly to 4.2% in June.
- Those with some college increased slightly to 3.4%
- Bachelor’s degree and higher remained the lowest group and decreased a little to 2.4%.
May Metro Unemployment
Major Markets
- Of the top 5 major US markets, DFW unemployment remained the lowest at 3.7%.
- 5 out of 5 US markets had a MoM decrease.
- Of the top 5 major US markets, Houston saw the largest YoY decrease in unemployment of 30 bps.
Employment Changes in Key Metropolitan Areas
In May 2025, nonfarm payroll employment increased over the year in 23 metropolitan areas, decreased in 2 areas, and was essentially unchanged in 362 areas.
The most significant employment gains occurred in:
- New York-Newark-Jersey City, NY-NJ-PA: Added 95,300 jobs.
- Dallas-Fort Worth-Arlington, TX: Gained 46,800 jobs.
- Miami-Fort Lauderdale-West Palm Beach, FL: Increased by 42,900 jobs.
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