The jobs report showed manufacturers are pausing hiring amid tariff uncertainty, while unemployment fell partly because fewer people are looking for work.

Hiring rose modestly from a revised 144,000 in May and beat economists’ expectations of fewer than 118,000 new jobs and a rise in the unemployment rate The U.S. job market has cooled considerably from the red-hot days of 2021-2023 when the economy bounced back with unexpected strength from COVID-19 lockdowns and companies were desperate for workers.