US hiring growth cooled sharply in June, tempering earlier job-market momentum.
Nonfarm payrolls rose 57,000, with the prior two months revised down, the Bureau
of Labor Statistics said on Thursday. The unemployment rate fell to 4.2% largely
because labor force participation dropped sharply. The slowdown was driven by
the biggest decline in leisure and hospitality payrolls since 2020; retail trade
and information sectors also shed jobs, while health care and social assistance
continued to add positions. The report says consumer spending has held up
despite energy shocks from the Iran war, but household pessimism about high
prices and wages lagging inflation may be keeping employers cautious on hiring.
