The Labor Department on Friday reported a net loss of 125,000 jobs in the month. That was due primarily to the loss of 225,000 census jobs that had swelled payrolls by 433,000 net jobs in May. Economists surveyed by Briefing.com had forecast a loss of 100,000 jobs in June.
Business hiring rebounded to 83,000, which was a bit weaker than hoped, from a revised total of 33,000 jobs in May.
State and local governments cut 10,000 jobs in the month. That, and the gain of 27,000 non-census jobs by the federal government, lead to the overall loss in jobs.
The unemployment rate fell to 9.5% from 9.7% in May. Economists had forecast it would climb to 9.8%. But the improvement was due mostly to many discouraged job seekers not bothering to look for work and no longer being counted as part of the labor force.