US economy added slightly more than expected jobs in June, unemployment rate rose above consensus

Closely watched employment report from the US Labor Department’s Bureau of Labor Statistics showed that US Nonfarm payrolls increased by 206,000 jobs in June, above expected 190,000 rise and against May’s downwardly revised figure to 218,000 from 272,000. 

The same report showed that the unemployment rate rose to 4.1% from 4.0% in May, in line with expectations, while average hourly earnings rose 0.3% after advancing 0.4% in May month on month and annualized figure showed rise by 3.9% in June vs 4.1% increase previous month and met expectations. 

US job growth slowed to a still-healthy pace in June, with the unemployment rate rising to 4.1%, increasing the chances that the Federal Reserve will be able to bring inflation under full control without significantly lowered risk that the economy would slide into recession. 

Although the US job growth slowed in June, analysts see the growth pace in June as still healthy, with the unemployment rate rising to 4.1%, adding to signals that the labor sector is resilient and boosting hopes that the Federal Reserve will be able to tame inflation without tipping the economy into recession. 

When added to the moderation in prices in May, the report confirmed that the disinflationary trend was back on track after inflation surged in the first quarter.
It also could boost Fed confidence in the inflation outlook and push the US central bank a step closer to start cutting rates later this year, after it has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range for one year.
The minutes of the central bank’s last meeting, released earlier this week, showed policymakers acknowledged the economy appeared to be slowing and that price pressures were diminishing.