US job gains eased slightly in June while unemployment edged up, government data showed on Friday, in a sign that the world's biggest economy is cooling steadily.

Wage growth decelerated, although it still outpaced consumer inflation. But this has not translated into rosy sentiment over the broader economy, adding to President Joe Biden's challenges as he seeks re-election.

The country added 206,000 jobs last month, the US Labour Department said, marking a slower pace of hiring than May's revised 218,000 figure.

The gains still beat a Briefing.com consensus estimate of 185,000, signalling that the labour market remains relatively resilient despite high interest rates.

The jobless rate ticked up from 4.0 percent to 4.1 percent.

For now, the figures point to a "very gradual, orderly cooling" in the market, ZipRecruiter chief economist Julia Pollak told AFP.

But she pointed to signs of weakness, including downward revisions to April and May hiring numbers by a cumulative 111,000.

The uptick in unemployment, though narrow, also marks the highest level since November 2021 – ending a 30-month stretch where the rate stood at or below 4.0 percent.

More than one-third of overall gains came from government employment, noted Mike Fratantoni, chief economist at the Mortgage Bankers Association. This means that headline gains do not paint a full picture of the labor market's health.

"Other aspects of the data indicate a slowing job market," he said in a note.

Temporary hires dropped by 49,000, indicating that business demand for labour is falling, Fratantoni said.

Wage growth slowed from 0.4 percent in May to 0.3 percent last month.

Compared with a year ago, the increase was 3.9 percent – also easing from before.

"Weakening demand for labour will lead to further moderation in wage growth," said economist Nancy Vanden Houten of Oxford Economics.

But this is likely to bolster the US Federal Reserve's confidence that inflation is on a downward path to policymakers' 2 percent target.

The latest report comes on the back of a slump in activity in the manufacturing and services sectors, alongside easing inflation.

While there is some way to go, these indicators will likely give the US central bank more confidence to begin cutting interest rates after holding them at a high level in recent months.

This move could, in turn, give the economy a boost. (AFP)