The U.S. labor market doesn't appear as tight and hot as a couple of months ago, with the June'sEmployment Situationreportlikely to show an overall cooling trend from a very strong performance in May.

Slated for release Friday at 8:30 a.m. ET, the official jobs report from theBureau of Labor Statisticsis expected to reveal a decline in nonfarm payroll growth and a slowdown in earnings momentum.

On Tuesday, Fed ChairJerome Powellsuggested the labor market is "cooling off appropriately," and the Fed will monitor these developments, ready to act if conditions warrant.