U.S. Employment Sees Solid Rise in June Amid Labor Market Cooldown

The U.S. saw a solid increase in employment in June, with significant contributions from government and healthcare. However, the unemployment rate reached a 2.5-year high, indicating a cooling labor market. The slower wage growth amidst an expanding labor pool has markets anticipating the Federal Reserve might begin cutting interest rates soon.

In a notable development for the U.S. labor market, employment figures for June have shown a solid increase, although the unemployment rate has reached a 2.5-year high of 4.1%, as reported by the Labor Department.

A substantial portion of new jobs came from government and healthcare services, altogether signaling a slackening labor market. This cooling trend could likely prompt the Federal Reserve to consider cutting interest rates soon.

Wage growth also decelerated to the slowest pace in three years amid an expanding workforce, contributing to market expectations of the Federal Reserve easing its monetary policy by September.

(Disclaimer: With inputs from agencies.)