The US job market showed resilience in May, with nonfarm payrolls rising 139,000, above Dow Jones estimates of 125,000 and the downwardly revised April total of 147,000. The unemployment rate held steady at 4.2%.
Worker pay grew more than expected, with average hourly earnings up 0.4% during the month and 3.9% from a year ago. Nearly half the job growth came from health care, which added 62,000, while leisure and hospitality contributed 48,000 and social assistance added 16,000.
However, some underlying trouble spots emerged. The April count was revised lower by 30,000, and March’s total came down by 65,000 to 120,000. There were also disparities between the establishment survey and the household survey, which showed a decrease of 696,000 workers.
Experts warn that despite the strong jobs report, economic headwinds still pose risks. The Bureau of Labor Statistics’ report comes as consumers and businesses brace for the impact of tariffs on business activity and inflation. Federal Reserve officials are cautiously watching the situation, with markets expecting them to stay on hold regarding interest rates.
“Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said ‘stronger than expected jobs growth and stable unemployment underlines the resilience of the US labor market in the face of recent shocks.'”
Source: https://www.cnbc.com/2025/06/06/jobs-report-may-2025.html