U.S. employers added 139,000 jobs in May, a slowdown from April but still a solid gain, amidst uncertainty caused by President Donald Trump’s trade policies. While the job market shows resilience, there are signs of potential weakening, and economists anticipate the Federal Reserve will likely keep interest rates unchanged for now.
Hiring in the US slows, though a 139,000 jobs added in May
LaborEconomic indicatorsFederal Reserve SystemInternational tradeBusinessJobs and careersU.S. Department of LaborBrooklynTariffs and global tradeDonald TrumpCarl WeinbergDave HeatonDaniel ZhaoJim Lebenthal
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U.S. employers added 139,000 jobs in May, a slowdown from April but still a solid gain, amidst uncertainty caused by President Donald Trump’s trade policies. While the job market shows resilience, there are signs of potential weakening, and economists anticipate the Federal Reserve will likely keep interest rates unchanged for now.
Trending- 1 November 2020: Federal government shed most jobs since this time.
- 2 January 2022: Percentage of those with jobs lowest since this time.
- 3 2022 & 2023: Federal Reserve raised its benchmark interest rate 11 times.
- 4 December 2023: Biggest drop in U.S. labor force since this time.
- 5 Last year: Fed cut interest rates three times.
- 6 April 2: Trump imposed sweeping tariffs.
- 7 April: U.S. job openings rose; layoffs ticked up; number of Americans quitting jobs fell.
- 8 May: U.S. employers added 139,000 jobs; average hourly wages rose 0.4% from April and 3.9% from a year earlier.
- 9 Last week: Number of Americans applying for unemployment benefits rose.
- 10 July 9: Tariffs delayed until this date.
- 11 September: Investors still expect just two cuts by the Fed this year, starting in September.
- Slower job growth in the US economy
- Decline in labor force participation and employment percentage
- Increased economic uncertainty for businesses due to trade policies and tariffs
- Federal Reserve likely to maintain current interest rates for the near future
- Businesses like Steel Horse Leather facing challenges in planning and pricing
What: U.S. employers added 139,000 jobs last month, a slowdown from a revised 147,000 in April, but still above economists' forecasts of 130,000. Healthcare companies added 62,000 jobs, and bars and restaurants 30,000. The federal government shed 22,000 jobs, and factories lost 8,000. Average hourly wages rose 0.4% from April and 3.9% from a year earlier. The number of people in the U.S. labor force fell by 625,000, and the percentage of those who had jobs fell to 59.7%.
When: May (latest job figures); April (previous month's job figures, job openings data); Friday (Labor Department report); last week (unemployment benefits report); 2022 and 2023 (Fed interest rate hikes); 2022, 2023, 2024 (job growth comparisons); September (expected Fed rate cut start); April 2 (Trump imposed tariffs); July 9 (tariffs delayed until).
Where: United States, Brooklyn.
Why: Uncertainty over President Donald Trump’s trade wars and sweeping taxes on imports (tariffs) are muddying the outlook for the economy and job market. The Federal Reserve is likely to keep interest rates unchanged as it waits to see the effects of these tariffs and broader inflation trends.
How: The Department of Labor released its jobs report. Economists and analysts provided commentary on the data and its implications for the economy and Federal Reserve policy. Businesses are adjusting to the volatility caused by trade policies.