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A Robust June Jobs Report Clouds Outlook for US Economy

A hiring sign is displayed at a restaurant in Schaumburg, Ill., Friday, April 1, 2022. More Americans applied for unemployment benefits last week, and while layoffs remain low, it's the fifth straight week claims have topped the 230,000 mark. Applications for jobless aid for the week ending July 2 rose to 235,000, up 4,000 from the previous week, the Labor Department reported Thursday, July 7. (AP Photo/Nam Y. Huh, File)
A hiring sign is displayed at a restaurant in Schaumburg, Ill., Friday, April 1, 2022. More Americans applied for unemployment benefits last week, and while layoffs remain low, it's the fifth straight week claims have topped the 230,000 mark. Applications for jobless aid for the week ending July 2 rose to 235,000, up 4,000 from the previous week, the Labor Department reported Thursday, July 7. (AP Photo/Nam Y. Huh, File)
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Washington (AP) -- A strong hiring report for June has assuaged fears that the U.S. economy might be on the cusp of a recession — and highlighted the resilience of the nation's job market.

Yet the figures the government released Friday also spotlighted the sharp divide between the healthy labor market and the rest of the economy: Inflation has soared to 40-year highs, consumers are increasingly gloomy, home sales and manufacturing are weakening and the economy might actually have shrunk for the past six months.