The still historically low layoffs have accounted for much of the labor market stability, with the hiring side of the equation soft amid hesitancy by employers to increase headcount because of the unsettled economic environment. Nonfarm payrolls increased by 139,000 jobs in May, down from 193,000 a year ago.
Data next week on the number of people receiving benefits after an initial week of aid, a proxy for hiring, could shed more light on the state of the labor market in June.
The so-called continuing claims dropped 6,000 to a seasonally adjusted 1.945 million during the week ending June 7. Recently laid off workers are struggling to find work.