The US labor market added more jobs than expected in June, with 206,000 nonfarm payroll jobs added, surpassing economists' expectations of 190,000. However, the unemployment rate unexpectedly rose to 4.1%, its highest level since November 2021. This indicates a cooling job market and slowing economic growth. June's job gains were slightly lower than May, which saw a revision in job additions from 272,000 to 218,000. The Federal Reserve is now considering interest rate cuts, with investors pricing in a 75% chance of a rate cut in September. This report reinforces the case for a September rate cut, as economic conditions are deteriorating. The labor market is showing signs of weakening, with rising unemployment claims and slowing wage growth. Overall, the data suggests the Fed may need to make adjustments to support the slowing economy.