The number of non-farm payrolls in June is expected to reflect a softening labor market

The U.S. Department of Labor's June nonfarm payrolls, which will be announced this Friday, is expected to continue to grow, although the pace is slower than the previous month.

The report, which is the largest of several labor-related data released by the Ministry of Labor, is expected to continue to grow. The number of job offers increased by 272,000 in May, exceeding the forecast of 182,000 and 165,000 in April.

However, according to comments announced by US Federal Reserve (Fed) Chairman Powell on Tuesday, there is a possibility that this growth will come to an end. Speaking at a conference held in Portugal, Chairman Powell said that although employment has decelerated and the unemployment rate is at a historically low level, there has been an upward trend recently. Bloomberg predicts that the number of people employed in the non-farm sector will increase by 195,000 in June, and that the unemployment rate will stabilize at 4%.

President Powell said that although the labor market remains strong, it is moving significantly towards improving the supply-demand balance. Other senior Federal Reserve officials also believe that the job market is nearing an inflection point. Meanwhile, according to Bloomberg's forecast, the number of private sector employees will increase by 160,000 in June, while Pantheon Economics predicts that it will only increase by 125,000.

The US Federal Reserve (Fed) focuses on inflation, and average hourly wages are also an important indicator. A 0.3% increase from the previous month and a 3.9% increase from the same month last year are expected compared to the previous month's 0.4% increase from the previous month and the 4.1% increase from the same month last year. The labor force participation rate is expected to rise slightly to 62.6% from 62.5% the previous month.

Reports on the number of private sector employees by ADP and personnel reduction by challengers will also be announced tomorrow. The consensus forecast for ADP employment statistics is an increase of 165,000 people, which exceeds the previous increase of 152,000 people.