The U.S. unemployment rate edged down to 4.1% in June, according to data released Thursday by the Labor Department in Washington. The number of unemployed individuals decreased to 7.2 million.
The report indicated that U.S. businesses added approximately 147,000 jobs outside of agriculture. The healthcare sector and state government administration experienced the most significant gains. Conversely, employment in the federal sector saw a further decline. The number of long-term unemployed workers rose slightly to 1.6 million.
U.S. labor market figures are closely watched by investors globally. The possibility of interest rate cuts is often linked to the strength of the labor market and inflation levels. Lower interest rates are generally welcomed by stock market participants, as they can make savings accounts less appealing compared to stocks and provide businesses with cheaper access to credit.