U.S. employers added only 57,000 jobs in June, a modest gain that keeps the labour market expanding but gives investors and policymakers less room to ignore signs of economic cooling.

The Bureau of Labor Statistics said total nonfarm payroll employment changed little in June and the unemployment rate stood at 4.2 percent. Professional and business services, social assistance and health care continued to trend upward, while leisure and hospitality lost jobs.

That is not a collapse in employment. It is, however, a slower pace than the 172,000 jobs added in May and a reminder that the economy is moving through a more fragile mix of elevated inflation, Middle East uncertainty and cautious consumer sentiment.

Attention now turns to the Federal Reserve. At its 16-17 June meeting, the Federal Open Market Committee kept the federal funds target range at 3.5 to 3.75 percent. Chairman Kevin Warsh said the Fed remained focused on price stability and maximum employment, while the statement said inflation was still elevated relative to the 2 percent target.

The minutes from that meeting are scheduled for release on 8 July. Markets will be looking for signs of how strongly officials debated the balance between inflation risks and a softer jobs picture.