The U.S. labor market added 147,000 jobs in June, showing continued hiring even as the unemployment rate climbed to 4.2%, the Labor Department reported Friday.

The monthly employment data points to a labor market that is still expanding, but at a more measured pace. The rise in unemployment suggests some softening, even as employers continued to add workers across the economy.

Economists and policymakers closely watch the jobs report for clues about the broader economy, including wage pressure, consumer demand and the likely direction of Federal Reserve policy. A steady pace of hiring can help support growth, but a higher unemployment rate may signal emerging strain.

The June figures add another snapshot to a labor market that has remained resilient through a period of elevated interest rates and shifting economic conditions. Analysts will now look to upcoming inflation and spending data to see whether the slowdown in joblessness or hiring becomes more pronounced.