US jobs growth in June beats expectations

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US jobs growth slowed last month although the economy still created more posts than expected, official figures show.

Employers added 206,000 jobs in June, although the number of jobs created in May was revised down to 218,000 from the previous estimate of 272,000.

The US unemployment rate edged up to 4.1%, while wage growth rose at its slowest for three years.

Analysts said the figures could take the US central bank, the Federal Reserve, a step closer to cutting rates later this year.

Economists had forecast that the US economy would add 190,000 jobs in June.

Emily Bowerstock Hill, the chief executive of Bowerstock Capital Partners, said the figures were “relatively benign”.

“The data isn’t bad enough to alarm markets, and not bad enough to worry the Fed,” she said.

She added that the Fed has “very clearly telegraphed they are expecting one cut” this year.

Central banks around the world tend to follow the Fed’s lead in cutting rates, although Bank of England Governor Andrew Bailey said in May that “there is no law that the Fed has to go first”.



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