The US economy added fewer jobs than economists predicted in June, the Bureau of Labor Statistics reported Friday, as hiring momentum faded across sectors. Nonfarm payrolls rose by roughly 110,000, below consensus estimates, while the unemployment rate climbed to 4.3 percent.

Revisions to April and May figures also reduced prior gains. Average hourly earnings growth remained subdued, easing concerns about wage-driven inflation.

The weaker employment data strengthened market expectations of a Federal Reserve interest-rate cut in September. Traders in federal funds futures increased bets on rate relief following the release, according to CME Group's FedWatch tool. Economists at Goldman Sachs and other institutions have argued that a softening labor market gives the Fed scope to ease policy while inflation hovers near its 2 percent target.

The timing of the report reflected the Independence Day holiday. US markets closed on Friday, creating thin trading conditions to absorb the figures before the long weekend.

The labor market weakness coincided with uncertainty over trade policy. The Trump administration declined to renew the USMCA trade agreement with Canada and Mexico in its current form, clouding the outlook for manufacturing and cross-border commerce. Hiring in goods-producing industries was among the weakest components of the June employment data.