The US labour market appears to have lost some momentum in June following three relatively strong months of growth. Job additions slowed considerably and came in well below economists’ expectations, based on a Bloomberg survey. Data from earlier this week showed that demand for labour was relatively robust, but this labour market report shows hiring actually slowed. Investors were left to consider how this might impact the upcoming interest rate decisions of the US Federal Reserve Board (Fed).

• The US economy added 57,000 jobs in June, which was down from the 129,000 job additions in the previous month. Following a massive surge in jobs in March, hiring has since slowed each month but remained relatively solid.
• The professional services and social assistance industries both experienced solid job growth over the month. Conversely, employment in the leisure and hospitality industry saw a significant decline in jobs.
• The labour force participation rate declined to 61.5% in June from 61.8% in the previous month.
• The US unemployment rate declined to 4.2% in June from 4.3% in May. This marked its lowest level since June 2025.
• Earlier this week, a report from Automatic Data Processing showed that US private businesses added 98,000 jobs in June, down from May’s 122,000.

While the US labour market remains stable, June’s data showed a bit of a slowdown after three strong months. The results did give markets pause about whether the Fed will indeed raise interest rates at an upcoming meeting. The US labour market still faces risks from geopolitical tensions and trade uncertainty. The US opted not to renew the Canada-United States-Mexico Agreement, which means annual reviews, leaving North American businesses unsure of any potential changes to the agreement.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.