Job growth was narrowly based in June, with government and healthcare jobs accounting for nearly three-fourths of total job gains. The strong increase in government jobs (+70,000) was driven by job gains at the state and local level (+65,000).

Private sector payrolls continued to slow in June to 136,000 from 193,000 in May, with healthcare and social assistance accounting for 82,000 of those jobs.2 Diving deeper into the details, goods producing jobs rose 19,000 in June, as strong gains in construction employment offset a decline in manufacturing jobs. There was some June weakness in the service sector, as employment increased 117,000, down from 181,000 in May. While the healthcare sector saw strong gains in June, most other service sectors lost momentum.