May jobs report

Employers added 139,000 jobs last month – down from 177,000 in April but ahead of analysts’ expectations of 125,000. — Image credit: KEVIN LAMARQUE/POOL/AFP via Getty Images

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Summary

Growth and loss

The latest jobs report shows that the U.S. added 139,000 jobs in May, though the federal government cut 22,000 jobs in may alone.

Stock market reactions

The stock markets have reacted positively to the new report, with the Dow Jones Industrial average, S&P 500 and Nasdaq all seeing gains.

Trade policy

Trade and tariff policy is also in focus, as the president is having high level meetings with Chinese representatives over a trade deal to avoid tariffs, with more meetings scheduled at a later date.

Full story

The U.S. labor market added more jobs than expected in May, according to the Bureau of Labor Statistics (BLS) report released Friday, June 6. Employers added 139,000 jobs last month – down from 177,000 in April but ahead of analysts’ expectations of 125,000.

The national unemployment rate held steady at 4.2%, unchanged from April.

The number of unemployed workers remains at approximately 7.2 million.

Which sectors are seeing job growth?

The BLS described May’s job growth as “similar” to the 12-month average of 144,000 new jobs per month. Gains were concentrated in health care, leisure, hospitality and social assistance, while job losses continued in the federal government.

Health care led the way, adding 62,000 jobs in May. Meanwhile, the Trump administration’s efforts to shrink the federal workforce appeared to continue, with the government reporting 22,000 federal job cuts in May and 59,000 since January. However, that figure may underestimate the total impact – individuals on paid leave or receiving severance are not classified as unemployed.

How are the markets reacting to the labor news?

Wall Street responded positively to the report. Minutes after its release, Dow Jones Industrial Average futures were up 160 points, S&P 500 futures rose by 25 points, and the tech-heavy Nasdaq climbed 90 points.

Federal Reserve Gov. Adriana Kugler said Thursday, June 5, “One encouraging sign about economic activity is the resilience of the labor market… and that labor supply and demand remain in relative balance.”

Analysts had warned that a jobs number below 100,000 could raise fresh concerns about a looming recession. Friday’s figure, though a dip from April, was strong enough to ease those fears.

Trade and Fed policy also in focus

Attention also remains on trade developments, as President Donald Trump’s 90-day negotiating window with several foreign nations, most notably in China, continues into July. On Thursday, Trump posted on Truth Social that he had “a very good phone call with President Xi of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal.” He said the call lasted about 90 minutes and that further talks between the two countries are planned at a location to be determined.

The Federal Reserve’s next interest rate decision is also under scrutiny. President Trump has continued pushing Fed Chair Jerome Powell to cut rates from their current 4.25% to 4.5% range. Earlier this week, Trump wrote on Truth Social, saying, “Too Late Powell must now lower the rate. He is unbelievable.”

As of May, the inflation rate stands at 2.3%, according to the BLS – just above the Fed’s 2% target, complicating the case for an immediate rate cut.

Jason Morrell (Morning Managing Editor), Jack Henry (Video Editor), and Mathew Grisham (Digital Producer) contributed to this report.

Tags: Donald Trump, Dow Jones Industrial Average, Interest rates, Jerome Powell, jobs report, Nasdaq, S&P 500, Unemployment rate

[Craig Nigrelli]

The U.S. labor market added more jobs than expected in May, according to the Bureau of Labor Statistics (BLS) report released Friday. Employers added 139,000 jobs last month – down from 177,000 in April, but ahead of analysts’ expectations of 125,000.
The national unemployment rate held steady at 4.2%, unchanged from April.
The number of unemployed workers remains at approximately 7.2 million.
The BLS described May’s job growth as “similar” to the 12-month average of 144,000 new jobs per month. Gains were concentrated in health care, leisure, hospitality and social assistance, while job loss continued in the federal government.
Health care led the way, adding 62,000 jobs in May. Meanwhile, the Trump administration’s efforts to shrink the federal workforce appeared to continue, with the government reporting 22,000 federal job cuts in May and 59,000 since January. However, that figure may underestimate the total impact – individuals on paid leave or receiving severance are not classified as unemployed.
Wall Street responded positively to the report. Minutes after its release, Dow Jones Industrial Average futures were up 160 points, S&P 500 futures rose by 25 points, and the tech-heavy Nasdaq climbed 90 points.
Federal Reserve Governor Adriana Kugler said Thursday, “One encouraging sign about economic activity is the resilience of the labor market…and that labor supply and demand remain in relative balance. “
Analysts had warned that a jobs number below 100,000 could raise fresh concerns about a looming recession. But Friday’s figure – though a dip from April – was strong enough to ease those fears.
Attention also remains on trade developments, as President Trump’s 90-day negotiating window with several foreign nations – most notably in China – continues into July. On Thursday, Trump posted on Truth Social that he had “ a very good phone call with President Xi of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal.” He said the call lasted about 90 minutes and that further talks between the two countries are planned at a location to be determined.
The Federal Reserve’s next interest rate decision is also under scrutiny. President Trump has continued pushing Fed Chair Jerome Powell to cut rates from their current 4.25% to 4.5% range. Earlier this week, Trump wrote on Truth Social: “Too Late Powell must now lower the rate. He is unbelievable. “
As of May, the inflation rate stands at 2.3%, according to the BLS – just above the Fed’s 2% target, complicating the case for an immediate rate cut.

Why this story matters

The latest U.S. employment report provides insight into the health of the labor market and its potential effects on economic policy, financial markets and ongoing trade negotiations.

Labor market trends

Job creation outpaced expectations in May, with key sectors like health care experiencing growth, suggesting continued resilience in employment and alleviating concerns about an imminent recession.

Trade negotiations

Ongoing trade discussions between the U.S. and China remain a critical factor affecting economic confidence and policy decisions, as highlighted by recent communications between President Trump and Chinese President Xi.

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Behind the numbers

Multiple sources report that U.S. employers added 139,000 jobs in the last month, which is considered solid but shows a slowdown from previous months. Treasury yields increased to 4.47% on the 10-year note, and major indexes such as the S&P 500, Dow Jones, and Nasdaq saw gains between 1% and 1.3%, reflecting cautious optimism in the market.

Global impact

Trade tensions between the U.S. and China continue to shape international market conditions, affecting not only U.S. companies but global supply chains and sales. According to reports, European and Asian stock indices reflected mixed results, with some major markets in Europe declining and Asian exchanges showing varied performance based on local developments and reactions to U.S. policy.