US employers probably tempered their hiring while wage growth moderated in June, another favorable development for Jerome Powell and his Federal Reserve colleagues seeking more confirmation that inflation is slowing.

Payrolls in the world’s largest economy are projected to have increased by about 190,000, according to a Bloomberg survey of economists ahead of Friday’s report. That’s a step down from the surprisingly robust 272,000 gain in May. The jobless rate probably held at 4%.

Average hourly earnings are projected to have climbed 3.9% from June of last year, the smallest annual advance in three years.

Recent data including declining vacancies and higher weekly jobless claims underscore cooler-yet-resilient labor demand. Having more available workers to choose from is helping companies step back from the steep pay increases that had been a source of inflationary pressures over the past few years.

The closely watched jobs report will surface days after a Tuesday panel in Portugal that includes Fed Chair Powell. Investors will monitor his comments for clues on how soon the US central bank may start lowering interest rates. Christine Lagarde, Powell’s euro-area counterpart, will also be on the panel at the European Central Bank’s annual forum in Sintra.

While off the boil, the US labor market remains healthy, allowing consumer spending and the broader economy to continue plugging along despite higher borrowing costs.

Another key report for the coming holiday-shortened week in the US is expected to show a further decline in job openings, suggesting that companies are having greater success filing positions. Openings for May are projected to have dropped below 8 million for the first time since early 2021.

In Canada, the labor force survey for June will provide insight into the job market, which has failed to keep pace with explosive population growth and yet has racked up higher-than-average wage gains. We’ll also get a look at the country’s international trade balance.