The US non-farm payroll report shows that the job market remains resilient

July 5, according to the Wall Street Journal, the U.S. Labor Department reported Friday that the U.S. added 206,000 jobs last month. The unemployment rate rose to 4.1 percent. Despite the Federal Reserve keeping interest rates at their highest level in more than two decades, the report shows that labor market resilience remains. The report shows that U.S. hiring activity has slowed and the labor market appears to have reached a better balance. The unemployment rate has risen from a multi-decade low of 3.4 percent hit early last year. Average hourly earnings rose 3.9 percent in June from a year earlier, the smallest increase since 2021. Federal Reserve officials have become less concerned about the overheating job market and expect to cut interest rates later this year as long as inflation doesn't explode, but still-strong job growth does give them a sense that they can be more patient before cutting rates.