Labor Market and Economy Report: A Look at Trends in June 2025

The unemployment rate declined slightly from 4.2% in May to 4.1% in June. The labor force participation rate declined from 62.4% to 62.3%.

Unemployment rates specific to the industries Aston Carter supports were as follows for June: finance and insurance (2.7%), professional and business services (3.5%), hospitals (1.3%), utilities (1.0%), manufacturing (3.6%) and construction (4.2%).

Among skilled labor categories Aston Carter sources talent for, unemployment in business and financial was 2.5% and office and administrative was 3.6%.

The year-over-year inflation rate increased by 2.7% between June 2024 and June 2025, an increase from May’s reading of 2.4%. The Federal Reserve has maintained interest rates at current levels throughout the first half of 2025, citing heightened economic uncertainty.

Average hourly earnings increased by 3.7% for the 12 months ending June, slightly below May’s increase of 3.8%. “Real” average hourly earnings (wages adjusted for inflation) increased by 1.0% between June 2024 and June 2025. In other words, average hourly earnings are keeping up with inflation, but consumers may still be feeling the pressure of higher prices.