The US labour market lost momentum in June, with employers adding just 57,000 jobs, well below market expectations and the weakest monthly employment gain in months, reinforcing signs that the world’s largest economy is cooling under the weight of high interest rates.
Data released Thursday by the U.S. Bureau of Labor Statistics showed nonfarm payroll employment increased by a seasonally adjusted 57,000 during the month, significantly below economists’ expectations of 115,000 new jobs. The figure also marked a sharp slowdown from the revised 129,000 jobs created in May.
Despite the weaker hiring pace, the unemployment rate remained unchanged at 4.2%, suggesting the labour market continues to exhibit resilience even as businesses become more cautious about expanding their workforce.
The June report is likely to strengthen expectations that the U.S. Federal Reserve could begin easing monetary policy later this year if inflation continues to moderate.
The June employment data arrives as policymakers attempt to engineer a soft landing for the U.S. economy, bringing inflation under control without triggering a recession.
