U.S. Job Growth Beats Expectations Amid Concerns Over Economic Impact of Tariff Hikes

Despite global concerns that rising U.S. tariffs could negatively impact the economy, new government data released Thursday shows stronger-than-expected job growth in June.

According to the U.S. Department of Labor, approximately 147,000 new jobs were added in June, up from around 144,000 in May. The unemployment rate fell from 4.2% to 4.1%, while wage growth stood at 0.2%, as per the report.

Following the COVID-19 pandemic, the U.S.—the world’s largest economy—has shown relatively strong recovery. A resilient labor market has continued to support consumer spending.

However, U.S. President Donald Trump's tariff hikes on steel, aluminum, and automobile imports—as well as on trade partners—have dampened consumer sentiment and increased trade uncertainty.

Analysts say the President’s approach of announcing, adjusting, or postponing tariffs has made firms cautious about investing. With a new round of tariff increases potentially taking effect next week, there are concerns that businesses may slow down hiring and scale back job creation.