US hiring eased in May, reflecting a labor market that is gradually slowing but has yet to reflect significant damage from the White House's volatile policies including tariffs.
The US added 139,000 nonfarm jobs in May, slightly above economists' expectations for about 130,000 jobs, according to the Bureau of Labor Statistics (BLS). Job growth for April was revised down by 30,000 to 147,000 and job growth for March was revised lower to 120,000 from an initial 185,000.
Job growth averaged 149,000 over the 12 months prior to May, BLS said.
Fed funds futures after the report showed a 99.9pc probability the Federal Reserve will keep its target rate unchanged at the next meeting in two weeks, up 3.3 points from the prior day. The Fed has signalled it will continue to monitor the impacts of the administration's tariff, fiscal and other policies before adjusting policy.
The unemployment rate remained unchanged at 4.2pc and has remained in a range of 4-4.2pc since May 2024.
Federal government jobs declined by 22,000 and are off by 59,000 since January, reflecting the initial impacts of President Donald Trump's efforts to slash the federal workforce, which have been challenged in the courts. Employees on paid leave or receiving severance pay are reported as employed.
Leisure and hospitality added 48,000 jobs last month following 29,000 jobs the prior month. Health care added 78,000 last month following gains of 85,000.
Professional and business services lost 18,000 after gains of 10,000. Temporary help services, considered a leading indicator of labor market strength, lost 18,000. Transportation and warehousing gained 6,000 in May after a loss of 8,000.
Manufacturing jobs fell by 8,000 following gains of 5,000. Motor vehicles and parts added 400 workers. Mining and logging lost 1,000 jobs.
Average hourly earnings were up by 3.9pc in May, unchanged from the prior month.
By Bob Willis
