Hiring in the U.S. slowed in June, raising hopes for interest rate cuts [Video]

The U.S. jobs market cooled in June but remains solid, raising the odds that the Federal Reserve will be able to curtail inflation without pushing the economy into a downward spiral.

Nonfarm payrolls rose by 206,000 jobs last month, in line with analyst forecasts, and unemployment edged up to a still-low 4.1% from 3.4% in early 2023 — its lowest in decades, according to the Labor Department’s Bureau of Labor Statistics data.

Numbers for the prior two months were downwardly revised, with May now showing 218,000 additional jobs instead of the previously reported 272,000 increase. April’s count was also revised lower, to 108,000 from 165,000. 

Average hourly earnings were 3.9% higher in June from a year earlier, the smallest increase since 2021. 

The labor force participation rate edged higher, indicating more people are entering the labor market. 

A modest slowdown in hiring and …