US Hiring Slows Sharply in June as Payrolls Rise Just 57,000

The US labor market cooled notably in June, with nonfarm payrolls rising by only about 57,000, close to half the number economists had forecast, according to the government's employment report released on July 2, a day early because of the Independence Day holiday. Adding to the softer picture, hiring figures for earlier months were revised lower. The unemployment rate ticked down to 4.2%, but that improvement was driven partly by weaker labor-force participation rather than stronger demand for workers. The data reinforced a narrative of a labor market that is gradually decelerating without collapsing. Analysts said the weaker print gives the Federal Reserve room to be patient, watching whether falling energy prices ease some of the inflation pressures that had been building, rather than rushing into its next policy move. The report landed just after the Fed held its benchmark rate at 3.50% to 3.75% in June with a hawkish tilt, and it prompted investors to trim expectations for a near-term rate increase, weighing on the dollar and lifting demand for safe-haven assets.