The US labour market is showing signs of cooling, with the unemployment rate rising to 4.1% in June, the highest since November 2021, and job growth in recent months being lower than initially reported. The economy added 206,000 jobs in June, exceeding forecasts, but revisions to April and May data revealed 111,000 fewer jobs than previously thought. This cooling trend, highlighted by downward revisions, a high proportion of healthcare and government jobs, and cuts to temporary workers, is prompting the Federal Reserve to consider potential rate cuts later this year. Treasury yields dropped, and the S&P 500 saw gains, reflecting market expectations of rate cuts. Despite the softer data, experts like Eric Winograd believe the labour market is not in a severe decline.