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

The US labour market slowed noticeably in June, with employers adding roughly 57,000 jobs, well below the pace seen earlier in the year, while the unemployment rate edged down to 4.2%. The softer reading, released ahead of the July 4 holiday, followed a similarly muted private-sector payrolls estimate and reinforced signs that hiring momentum is fading even as the economy keeps expanding. The data arrive at a delicate moment for the Federal Reserve, which held its benchmark rate at 3.50% to 3.75% in June while striking a hawkish tone, with several officials projecting at least one rate increase before year-end amid inflation still running above the 2% target. Investors will scrutinise minutes from that meeting, due July 8, for clues on how policymakers are weighing a slowing jobs market against persistent price pressures linked to higher energy costs. A cooler labour market could temper the case for further tightening, though officials have signalled that inflation remains their primary concern heading into the second half of the year.