- The US added 139,000 jobs in May, exceeding the expected 126,000.
- Unemployment was 4.2% for the third consecutive month.
- Other reports show businesses are being cautious due to economic uncertainty.
The US added 139,000 jobs in May, more than expected, and the unemployment rate didn't budge.
Economists predicted job growth of 126,000 and for unemployment to remain at 4.2%. This is the third straight month of a 4.2% rate and the 13th straight month at or above 4%.
The new data release from the Bureau of Labor Statistics is just one of several recent reports illustrating the much-watched US labor market. The Federal Reserve's Beige Book showed that some businesses are delaying hiring due to economic uncertainty. Separately, the National Federation of Independent Business showed small business optimism has continued to weaken. While insured unemployment claims are still low, they climbed in May.
The back and forth on tariffs, including a 90-day pause with China and higher duties on steel and aluminum, is adding pressure to business decisions. Cuts and deferred resignations within federal government agencies could mean job seekers turn to the private sector or leave the labor force.
"Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces," Andrew Challenger, senior vice president of the outplacement firm Challenger, Gray & Christmas, said in a report before Friday's news release. "Companies are spending less, slowing hiring, and sending layoff notices."
President Donald Trump has argued tariffs will help the US economy, despite some short-term pain for businesses and consumers.
CME FedWatch showed based on market trades an overwhelming chance the Federal Reserve will decide to hold interest rates steady at the next Federal Open Market Committee meeting in mid-June. Like business owners, the Fed is hoping for more clarity on the evolving economy.
This is a developing story. Please check back for updates.
