U.S. job growth likely slowed in June, unemployment rate seen at 3.6%

While demand for labour is cooling in the interest rate-sensitive goods-producing sector of the economy, businesses in the vast services industry are scrambling for workers

"It's very, very difficult to get a recession with so many job openings," said Jonathan Golub, chief U.S. equity strategist at Credit Suisse in New York.

U.S. employers likely hired the fewest workers in 14 months in June, but the jobless rate probably remained near pre-pandemic lows, underscoring labour market tightness that could encourage the Federal Reserve to deliver another 75-basis-point interest rate increase later this month.

Despite the anticipated slowdown in job growth last month, the Labor Department's closely watched employment report on Friday could ease fears of a recession that have mounted in recent days following a raft of tepid economic data, ranging from consumer spending to manufacturing.