The US economy added 139,000 jobs in May, a slowdown compared to recent months, as businesses cope with uncertainty around President Donald Trump’s trade war. The unemployment rate remained steady at 4.2%. However, the number of federal workers’ jobs decreased by 22,000 due to government efficiency cuts.
According to the Bureau of Labor Statistics, private-sector payrolls increased by just 37,000 in May, the lowest gain in over two years. Economists had expected a downward slump after data showed a cooling job market.
The Institute for Supply Management reported a manufacturing index reading of 49.9 in April, the lowest since June 2024. The University of Michigan’s survey of consumers also showed relatively stable consumer sentiment from April to May, with the exception that April’s reading was the lowest drop in consumer sentiment since 1990.
President Trump has called on Federal Reserve Chair Jerome Powell to cut interest rates, citing the US economy as doing well despite Europe’s rate cuts. However, economists say the impact of Trump’s trade war is yet to be seen in inflation readings, and it will likely take until the summer for data to adjust.
Source: https://www.theguardian.com/business/2025/jun/06/may-jobs-market-report