US adds 57,000 jobs in June as hiring slows; unemployment rate falls to 4.2%

WASHINGTON, United States — WASHINGTON — The US labor market added just 57,000 jobs in June, a sharp slowdown from earlier months, according to data released Friday by the Department of Labor. The unemployment rate edged down to 4.2% from 4.3% in May, though officials noted the decline largely reflected a drop in the labor force participation rate as a significant number of people stopped actively searching for work. The report attributed the cautious hiring environment to inflation running near its highest level in three years and consumer confidence approaching post-pandemic lows. Despite those headwinds, weekly jobless claims fell to 215,000 last week, and layoffs remained historically low, indicators that employers have continued to hold on to existing staff. Taken together, the figures point to an uneven labor market in which overall hiring momentum has clearly cooled even as the underlying demand for workers has stayed firm. Department of Labor figures show that job creation has decelerated noticeably since the second half of last year, while wage growth and labor force participation have moved within narrower bands. Federal Reserve policymakers are watching the latest figures closely as they weigh the timing of any further rate cuts. The central bank has signaled that it is in no rush to lower borrowing costs while services inflation and core price pressures remain stubborn. The Labor Department is scheduled to release its July jobs report in early August.