May Job Growth: 139,000 New Positions Added Amid Signs of Slowing Hiring Trends

In recent months, U.S. hiring has shown signs of slowing down, adding 139,000 jobs last month. That’s a solid number, but it came down from 147,000 in April, revealing some uncertainty in the job market.

Healthcare has been a bright spot, adding around 62,000 jobs. Bars and restaurants also contributed with 30,000 new positions. However, the federal government faced cuts, losing 22,000 jobs—the biggest drop since November 2020. Manufacturing wasn’t spared either, losing 8,000 jobs.

On the upside, average hourly wages increased by 0.4% from April and 3.9% compared to last year, slightly above expectations. But there are signs of trouble. A revised Labor Department report cut 95,000 jobs from previous months. The number of people in the workforce dropped by 625,000, the largest decline since December 2023, and employment rates fell to 59.7%, the lowest since January 2022.

Commentators, including Daniel Zhao from Glassdoor, noted that while the labor market appears to hold up, concerns about future impacts from tariffs hang in the air. Economic indicators paint a mixed picture: job openings rose to 7.4 million, a hopeful sign, but layoffs increased as confidence dipped.

This situation seems to stem from President Trump’s trade policies, including sweeping tariffs. Economists worry these policies may eventually push up inflation. Jim Lebenthal, an equity strategist, emphasized the need for the Federal Reserve to wait and see the effects of these tariffs before making any moves.

Small business owners are feeling the pressure too. Dave Heaton, who owns a leather goods company, described how unpredictable tariffs have complicated his planning and hiring. He recently raised prices due to increased shipping costs, reflecting a broader trend of businesses adapting to new economic realities.

According to the Federal Reserve, the job market has shown resilience despite matching struggles. For instance, they raised interest rates multiple times over the past two years, and many expected a recession, which hasn’t materialized yet.

As we navigate these challenges, it’s interesting to compare current conditions with the post-2008 recession period. While that time was marked by widespread unemployment and uncertainty, today’s job market, despite its current slowdown, still exhibits strength in some sectors.

For more insights into this topic, you can check out the Labor Department’s data for the latest trends and statistics.

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Labor, Economic indicators, Jobs and careers, Federal Reserve System, International trade, Economy, U.S. Department of Labor, Brooklyn, General news, Tariffs and global trade, AP Top News, Donald Trump, U.S. news, Business, Carl Weinberg, Dave Heaton, Daniel Zhao, Jim Lebenthal, U.S. News