U.S. Job Growth Extends Streak, but Signs of Concern Emerge

Halfway through the year, and four years removed from the downturn set off by the coronavirus pandemic, the U.S. job engine is still cruising — even if it shows increased signs of downshifting.

Employers delivered another solid month of hiring in June, the Labor Department reported on Friday, adding 206,000 jobs in the 42nd consecutive month of job growth.

At the same time, the unemployment rate ticked up one-tenth of a point to 4.1 percent, up from 4 percent and surpassing 4 percent for the first time since November 2021.

The gain in jobs was slightly greater than most analysts had forecast. But totals for the two previous months were revised downward, and the uptick in unemployment was unexpected. That has led many economists and investors to shift from having full faith in the jobs market to having some concern for it.

“These numbers are good numbers,” said Claudia Sahm, the chief economist for New Century Advisors, cautioning against overly negative interpretations of the report.

But “the importance of the unemployment rate is it can actually tell us a bit about where we might be going,” she added, noting that the rate had been drifting up since hitting a half-century low of 3.4 percent early last year.