U.S. job growth slowed sharply in June, with only 57,000 nonfarm payrolls added, well below expectations and a revised weaker May figure.

The unemployment rate dipped to 4.2%, but largely because fewer people were participating in the labor force, and household employment dropped significantly.

Several sectors showed mixed results, with gains in healthcare, social assistance, and business services, but a large loss in leisure and hospitality jobs.

Wage growth remained steady, rising 0.3% for the month, suggesting no major acceleration in inflation pressures, CNBC has reported.

The weaker report eased concerns about further Federal Reserve rate hikes, with markets now expecting the Fed to hold steady through the summer.