US employers added fewer jobs than anticipated in June, signaling a noticeable deceleration in hiring activity.
The official employment report fell short of economists' consensus, underscoring growing fragility in the labor market as the economy contends with persistent inflationary pressures stemming from the Iran War.
The data points to a wobbly labor landscape that contrasts with earlier in the year, when robust hiring had helped allay fears of an economic downturn.
With inflation remaining elevated due to geopolitical disruptions, businesses appear to be pulling back on recruitment, raising questions about the sustainability of the current economic expansion.
This development follows a private-sector jobs report from ADP that also missed expectations, with employers adding just 98,000 positions in June.
The consecutive misses suggest that the slowdown is broad-based, affecting both public and private sectors.