May Jobs Report: Hiring Slows to 139K
U.S. job growth decelerated in May, with employers adding 139,000 jobs, signaling economic headwinds from tariffs and federal spending cuts. teh latest report indicates a slowdown,alongside revisions that cut 95,000 jobs from March and April,according to the Labor Department. While the unemployment rate held steady at 4.2%, the federal government shed 22,000 jobs, contributing to a total loss of 59,000 since the year began. Manufacturing felt the pinch too, cutting 8,000 positions due to tariffs. Average wages edged up 3.9%. News Directory 3 has the latest analysis. Discover what’s next for the economy?
U.S. Job Growth Slows Amid Tariff, Spending Cut Concerns
The latest Labor department report indicates a slowdown in U.S. job growth,with employers adding 139,000 jobs in May. This reflects the impact of tariffs and federal job cuts on the economy. The labor department report also revised down job gains for March and April by a combined 95,000 jobs.
The unemployment rate remained steady at 4.2%, but the workforce experienced a reduction of 625,000 individuals. While hospitals, restaurants, and transportation saw employment increases, the federal government reduced its workforce by 22,000 in May, bringing the total federal job losses to 59,000 as the start of the year.
Manufacturing also experienced job losses, with factories cutting 8,000 positions. An Institute for Supply Management survey highlighted tariffs as a drag on manufacturing, impacting orders, output, and employment.
Average wages saw a 3.9% increase compared to the previous year, according to the Labor Department, potentially outpacing price increases.
What’s next
Economists will be closely watching upcoming economic data to assess the full impact of tariffs and spending cuts on the labor market and overall economic growth. The Federal Reserve will also consider these factors when making future monetary policy decisions.