What happened
The US economy added just 57000 jobs in June, the Labor Department reported, well below the 115000 that economists had expected. The unemployment rate slipped to 4.2 percent, though mostly because fewer people were looking for work.
Why it matters
Hiring has clearly cooled, and figures for April and May were revised down by a combined 74000. A weaker jobs market gives the Federal Reserve more reason to think about cutting interest rates rather than raising them.
Explained simply
Think of the jobs report as the economy stepping on a set of scales each month. This month the number came in light, which tells us the engine of hiring is idling rather than racing. When the labour market slows, central bankers usually ease off the brakes, because they no longer need high rates to cool things down.
What it means for you
If US rate cuts move closer, that can filter through to cheaper global borrowing costs over time, which may eventually help UK mortgage pricing and support share prices in your pension or ISA. For now, savers should still lock in the best fixed rates while they last.
