US LABOR MARKET COOLING AS UNEMPLOYMENT RATE RISES TO 4.1%

U.S. employment increased solidly in June, but government hiring accounted for more than a third of the payrolls gain and the unemployment rate hit a 2-1/2-year high of 4.1%, pointing to a slackening labor market that keeps the Federal Reserve on course to start cutting interest rates this year.

The Labor Department on Friday also showed the economy created 111,000 fewer jobs in April and May than previously estimated, suggesting the trend in payrolls growth was slowing. Annual wages increased at the slowest pace in three years as the labor pool expanded, adding to the flashing warning signals in the jobs market. About 277,000 people entered the labor force last month, accounting for the increase in the jobless rate from 4.0% in May to the highest level since November 2021.

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