The jobs report showed manufacturers are pausing hiring amid tariff uncertainty, while unemployment fell partly because fewer people are looking for work.

Hiring rose modestly from a revised 144,000 in May and beat economists’ expectations of fewer than 118,000 new jobs and a rise in the unemployment rate The U.S. job market has cooled considerably from the red-hot days of 2021-2023 when the economy bounced back with unexpected strength from COVID-19 lockdowns and companies were desperate for workers.

Employers across the U.S. added 147,000 jobs in June, with the labor market remaining resilient despite slowing economic growth this year. That figure is in line with the average monthly gain of 146,000 over the last year,