The US labor market, which had shown resilience for over two years, slowed down in May with a gain of 139,000 jobs, according to the Bureau of Labor Statistics. The unemployment rate remained steady at 4.2%. While these numbers indicate that the economy is not collapsing, some economists warn that fissures are spreading and that labor market slowdown may be accelerating.
President Donald Trump’s policy moves have driven consumer sentiment lower and clouded businesses’ lines of sight. Economists expect this trend to continue, with many suspended their forecasts for future earnings due to uncertainty. The pace of job growth remains solid but is softer than initially thought, with average monthly gains averaging around 124,000 jobs.
The slowdown in labor market activity is particularly concerning when considering the manufacturing sector’s losses of 8,000 jobs and the federal government’s continued layoffs, which have worsened for four consecutive months. The Trump administration’s efforts to slash the federal workforce and gut agencies are causing collateral damage in the private sector.
However, some analysts believe that the labor market is “good enough” to keep the Federal Reserve on hold as it considers interest rate cuts later this year. Despite concerns about inflation, the Fed remains cautious due to softening employment conditions.
Key figures:
* 139,000: The number of jobs gained in May
* 4.2%: The unemployment rate
* 124,000: The average monthly gain in job creation
* 8,000: The number of jobs lost in the manufacturing sector
* 22,000: The number of federal government layoffs in May
Source: https://edition.cnn.com/2025/06/06/economy/us-jobs-report-may-final