Interestingly robust job market lost some steam in June as employment growth slowed. 

According to data released by the Labor Department on Friday, nonfarm payrolls climbed by 209,000 in June, and the unemployment rate was 3.6%.

Comparatively, the Dow Jones consensus forecasts called for growth of 240,000 and a 3.6% unemployment rate. 

Although the total was still strong historically, it was a significant decrease from May's downwardly revised total of 306,000 jobs created, making it the worst month for employment growth since payrolls decreased by 268,000 in December 2020. The unemployment rate dropped by 0.1 points. 

Watched salaries data came in somewhat stronger than anticipated. The average hourly wage climbed by 4.4% from a year ago and by 0.4% for the month. The typical work week grew as well, rising by 0.1 hours to 34.4 hours. 

Without an increase in government employment of 60,000, almost all of which came from the state and local levels, job growth would have been significantly weaker. 

Health care (41,000), social assistance (24,000), and construction (23,000) were other industries with significant growth. 

Only 21,000 new positions were added in the leisure and hospitality sector in February, despite being the sector with the fastest job growth over the previous three years. The industry has significantly decelerated, with very modest improvements over the past three months. 

After payroll processing company ADP on Thursday projected an increase in private sector jobs of 497,000, there was some expectation that the Labor Department report could reflect a considerably higher-than-anticipated number. 

Following the announcement of the jobs report, markets declined, with futures linked to the Dow Jones Industrial Average falling by roughly 90 points. Treasury yields on longer maturities were somewhat higher. 

The direction of the Fed's monetary policy is seen to be largely dependent on employment statistics. 

The solid job market and the imbalance between supply and demand, according to policymakers, helped drive inflation, which at this point in 2022 was at its highest level in 41 years. 

(Sources: investing.com, reuters.com)