The latest June jobs report from the Labor Department shows employers added 206,000 roles, a slight decrease from the previous month. Unemployment inched up to 4.1%, surpassing 4% for the first time since November 2021. Despite defying forecasts of a stronger hiring pullback, the labor market is showing signs of tightening. The U.S. economy added jobs last month, with analysts expecting 200,000 nonfarm job gains. While hiring remained somewhat hotter than anticipated, the pace slowed compared to May. Private-sector hiring data from ADP indicated a lower-than-expected increase, driven by the leisure and hospitality industry. Other labor market indicators, such as rising initial unemployment claims, suggest a gradual slowdown in growth after a period of robust recovery. Business activity is cooling, leading to lower inflation rates, prompting discussions within the Federal Reserve about balancing inflation and employment goals. With concerns about potential economic impacts, experts warn about the risk of a job market pullback and increased layoffs if the Fed maintains its high-interest rate strategy for too long.