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

The US labour market softened notably in June, with employers adding just 57,000 jobs, about half the roughly 113,000 that economists had forecast, according to the closely watched monthly employment report released a day early ahead of the Independence Day holiday. Job gains for April and May were revised down by a combined 74,000, reinforcing the picture of decelerating hiring. The unemployment rate ticked down to 4.2%, but that decline was driven mainly by a large drop in the labour force rather than stronger hiring, pushing the participation rate lower. Analysts said the softer data give the Federal Reserve room to take a patient approach to its next move rather than rushing to raise rates, particularly as falling energy prices ease some inflationary pressure. The report landed as new Fed Chair Kevin Warsh, speaking at a central banking forum in Europe, said the inflation outlook had improved while declining to commit to a specific policy path. Markets responded by lifting expectations for a rate cut later in the year.