CIBC Research reviews the US jobs report for the month of June.

"Hiring dipped lower in the US in June, with 57K jobs added below the 113K consensus expectation. May was revised down from 172K previously to 129K. The unemployment rate ticked down a touch to 4.2% from 4.3% in May, as the labour force shrank by over 700K in June. This led to the labour force participation rate plunging lower to 61.5% from 61.8% in May. Private sector added 49K jobs, led by health care/social assistance adding 47K and professional and business services (36K), leisure and hospitality contracted by 61K, more than reversing the 40K gains from the previous month.  Government only added 8K jobs. Local government which experienced a 33K increase in the previous month, only added 2K in June. Average weekly hours worked remained the same in June as in May. Wage growth remained at 0.3% m/m, same as May," CIBC notes.

"Overall, the report suggests that the US labor market remains in balanced territory, with unemployment rate remaining low at 4.2% as labour demand roughly matches labour supply," CIBC adds.