Editor's note: This article was updated to add more detail and context.

The U.S. labor market cooled in June with employers adding 57,000 jobs, falling short of the 110,000 economists had expected and sharply decelerating from May's reading of 129,000.

The unemployment rate edged down to 4.2%, below the 4.3% consensus.

Average hourly earnings rose 0.3% on the month, matching the 0.3% expected, and were up 3.5% from a year earlier.

Economists had looked for annual wage growth to quicken from 3.4% to 3.5% .