One chart shows where the jobs are for June.

• In June, the U.S. nonfarm payrolls experienced moderate growth of 206,000 jobs, despite expectations of a stronger increase.
• While government grew by 70,000 jobs, the addition of health care and social assistance positions totaled 82,400.
• Several categories saw employment shrink, including manufacturing and professional and business services.

The June jobs report indicates that growth in the labor market is becoming more uneven, with signs of softening.

In June, the Labor Department reported that U.S. nonfarm payrolls grew by 206,000, but the job gains were narrow. Health care and social assistance added 82,400 jobs, while government increased by 70,000 positions. However, several categories saw employment shrink, including manufacturing.

Since the pandemic, social assistance and health care have played a crucial role in the labor market recovery. In June, ambulatory health services added 22,000 jobs, while hospitals grew their payrolls by 21,700.

Education accounted for 17,200 of the jobs added in the government sector. Additionally, both state and local governments added jobs outside of education.

The professional and business services sector experienced a decline, resulting in the loss of 17,000 jobs. According to Jeffrey Roach, the chief economist at LPL Financial, the unemployment rate among workers with a bachelor's degree also increased.

The rise in unemployment, particularly among those with a Bachelor's degree, indicates a slight slowdown in the job market. While there are no indications of an apocalypse, investors should exercise caution when the labor market is sustained by government payrolls, as stated by Roach in a Friday morning note.

The construction industry experienced a significant growth, adding 27,000 jobs in the report, which is a 25% increase from the previous year's average gain of 20,000 jobs, as stated by the Labor Department.