Logo

US Payrolls Surpass Expectations with 139,000 Jobs Added in May; Unemployment Steady at 4.2%

In May, the US labor market added 139,000 jobs, above projections, while unemployment remained steady at 4.2%. Health care led job gains, followed by leisure and hospitality sectors. Average hourly earnings rose 0.4% for the month, signaling wage growth outpacing forecasts. Despite these positive signs, government job cuts and mixed survey data highlight ongoing economic challenges amid tariff concerns and inflation risks.

US Payrolls Surpass Expectations with 139,000 Jobs Added in May; Unemployment Steady at 4.2%

US Job Market Shows Unexpected Strength in May

The US labor market demonstrated resilience in May as nonfarm payrolls increased by 139,000, surpassing the forecasted 125,000. This figure was slightly below the revised 147,000 jobs added in April. Despite concerns about tariffs and a slowing economy, job creation remained robust, maintaining the unemployment rate at a steady 4.2%.

Wage Growth Exceeds Projections

Average hourly earnings rose by 0.4% in May and showed a 3.9% increase year-over-year, outpacing expectations of 0.3% monthly growth and 3.7% annually. This wage growth underlines ongoing strength in the labor market’s compensation trends despite economic uncertainties.

Sector Contributions to Job Gains

Nearly half of the monthly job increase originated from the health care sector, which added 62,000 jobs, surpassing its average monthly gain of 44,000 over the past year. Other notable contributors included:

  • Leisure and hospitality: +48,000 jobs
  • Social assistance: +16,000 jobs

Conversely, the government sector experienced a loss of 22,000 jobs, reflecting efforts to reduce federal workforce numbers.

Labor Force Dynamics and Survey Variations

The household survey, which measures unemployment, revealed contrasting figures with a decline of 696,000 workers, with full-time employment falling by 623,000 while part-time workers increased by 33,000. Additionally, revisions to previous months adjusted March and April’s payroll counts downward by 65,000 and 30,000 respectively.

Economic Context and Outlook

While the current data indicates a labor market standing firm amid economic pressures, concerns remain about the impact of tariffs and potential inflationary pressures. Consumer and business sentiment remains cautious, awaiting the broader effects of trade policies.

The Federal Reserve approaches its upcoming policy meeting with a focus on inflation risks related to tariffs. Market expectations lean towards maintaining current interest rates, with policymakers adopting a patient stance amid the evolving economic landscape.

Overall, the report highlights a robust US labor market, but economic headwinds suggest careful monitoring in the months ahead.

US Job Openings Rise to 7.4 Million in April Amid Steady Labor Market
US Job Openings Rise to 7.4 Million in April Amid Steady Labor Market

Job openings in the US climbed to 7.4 million in April, surpassing forecasts by 191,000 with a jobs-to-unemployed ratio of 1.03:1. Hiring increased to 5.6 million, while layoffs rose to 1.79 million. Despite cautious worker confidence, the labor market remains stable amid economic uncertainties, with upcoming payroll data expected to show moderate growth and steady unemployment.

May Jobs Report Forecast: Hiring Growth Slows to 125,000 Amid Economic Uncertainty
May Jobs Report Forecast: Hiring Growth Slows to 125,000 Amid Economic Uncertainty

The May employment report is forecasted to show a slowdown in job growth to 125,000, down from April's 177,000, reflecting cautious business sentiment amid tariff-driven economic uncertainty. Mixed data show softening optimism but resilient labor demand. The report's outcome will be pivotal for assessing Federal Reserve monetary policy amid ongoing inflation risks and economic pressures.

May Jobs Report and Tariff Developments to Influence Market Momentum
May Jobs Report and Tariff Developments to Influence Market Momentum

Following a significant rally in May, the stock market's future gains depend on the upcoming May employment report and tariff-related developments. The S&P 500 and Nasdaq have advanced on optimism driven by strong tech performances and a preliminary trade deal, yet renewed trade tensions and elevated market valuations pose risks. Upcoming economic data will provide vital signals on consumer spending and labor market resilience against ongoing tariff pressures.

AI Set to Replace 50% of Entry-Level Jobs, Unemployment May Surge
AI Set to Replace 50% of Entry-Level Jobs, Unemployment May Surge

AI is projected to displace half of entry-level white-collar jobs within the next five years, driving unemployment among recent graduates up to 10-20%. Jobs in sales, customer support, software development, and marketing are especially vulnerable. As AI adoption expands beyond tech sectors, urgent initiatives in upskilling and education are crucial to mitigate workforce disruption.

Trump Urges Fed Chair Powell for Full-Point Interest Rate Cut Amid Strong Jobs Data
Trump Urges Fed Chair Powell for Full-Point Interest Rate Cut Amid Strong Jobs Data

President Donald Trump has called on Federal Reserve Chairman Jerome Powell to cut interest rates by a full percentage point following a robust May jobs report showing 139,000 new payrolls, exceeding expectations. Trump criticized Powell's approach, labeling it a "disaster" and asserting lower borrowing costs are essential for economic growth. The president’s demand continues the ongoing tension over monetary policy during his term.

US Job Growth Slows to 139,000 in May Amid Trade Policy Uncertainty
US Job Growth Slows to 139,000 in May Amid Trade Policy Uncertainty

US employers added 139,000 jobs in May, a slowdown from previous months, as trade policy uncertainties and fiscal disputes weighed on business confidence. The unemployment rate held steady at 4.2%, while over 625,000 workers left the labor force. Healthcare and hospitality sectors led hiring, but federal government jobs declined. Robust wage growth of 3.9% year-over-year indicates a resilient labor market despite challenges.

Trump Urges Apple to Manufacture iPhones in the US, Threatens Tariffs
Trump Urges Apple to Manufacture iPhones in the US, Threatens Tariffs

President Trump is urging Apple to manufacture its iPhones in the United States, threatening a 25% tariff on products made overseas, including in India. This push follows a conversation with Apple CEO Tim Cook and broadens to encompass all smartphone manufacturers. Industry experts warn that relocating production to the U.S. could dramatically increase costs for consumers. The debate surrounding tariffs continues as the White House remains unclear about their implementation.

Mallikarjun Kharge Critiques 11 Years of Modi Government's Failures
Mallikarjun Kharge Critiques 11 Years of Modi Government's Failures

On the 11th anniversary of the Modi government, opposition leader Mallikarjun Kharge sharply criticizes the ruling administration for rising unemployment, inflation, and unfulfilled promises. He emphasizes the negative impact on youth, farmers, and marginalized communities, asserting that the initial promises of 'good days' have shifted to feelings of despair among the populace.

Inflation Expectations Ease in May as Tariff Threats Soften, Fed Survey Finds
Inflation Expectations Ease in May as Tariff Threats Soften, Fed Survey Finds

In May, Americans’ inflation fears backed off as tariff threats softened. The New York Fed's survey revealed a significant drop in expected inflation over one and three years, though food prices remain a concern. Employment and financial outlooks also showed encouraging improvements, hinting at easing economic pressures ahead.

What to Expect from the Fed's June Meeting: Interest Rates and Economic Outlook
What to Expect from the Fed's June Meeting: Interest Rates and Economic Outlook

The Federal Reserve's June meeting, concluding Wednesday, is anticipated to keep interest rates unchanged but provide crucial insight into economic forecasts. With inflation remaining tame and geopolitical risks looming, the Fed faces pressure to balance cautious policy with the potential for rate cuts later in the year. Market watchers will closely monitor updated projections on inflation, employment, and growth as the Fed maintains a wait-and-see stance.

Key Changes in the Latest Federal Reserve Policy Statement Explained
Key Changes in the Latest Federal Reserve Policy Statement Explained

The Federal Reserve's June 2025 policy statement reveals a blend of new insights, removed language, and unchanged commitments. These nuanced changes signal shifts in economic priorities, impacting forecasts for inflation, interest rates, and financial markets. Understanding these adjustments helps decode the Fed's strategy amid evolving economic conditions.

Wall Street Awaits Iran-Israel Conflict Fallout as Stocks Hover Near Key Levels
Wall Street Awaits Iran-Israel Conflict Fallout as Stocks Hover Near Key Levels

As tensions escalate in the Iran-Israel conflict, Wall Street approaches a critical juncture with major indexes near historic levels but facing economic uncertainties. Investor optimism was buoyed by a temporary delay in U.S. military involvement and Fed hints of possible rate cuts. Yet, recent economic data indicate growing softness, fueling caution ahead of key inflation readings and earnings reports. Technology and industrial sectors continue to lead the market's cautious rally.

Fed Chair Powell Assures Trump of Non-Political Basis for Rate Decisions
Fed Chair Powell Assures Trump of Non-Political Basis for Rate Decisions

Federal Reserve Chair Jerome Powell met with President Donald Trump at the White House, emphasizing that monetary policy decisions will continue to rely on objective economic analysis rather than political influence. The central bank reaffirmed its commitment to address inflation, growth, and employment based on incoming data. Despite Trump's calls for lower rates, the Fed maintains a cautious stance amid tariff uncertainties and expects to hold rates steady for the near term.

US Federal Reserve Reaffirms Independence Amid Trump’s Rate Cut Pressure
US Federal Reserve Reaffirms Independence Amid Trump’s Rate Cut Pressure

Following a rare public statement, the US Federal Reserve has reaffirmed its non-partisan role in setting monetary policy. This comes after Chair Jerome Powell met with President Trump, who has been pressuring the Fed to reduce interest rates. The Fed emphasized that decisions will be made based on objective economic data, maintaining its independence despite political pressures.

US Inflation Rate Falls to 2.1% in April, Consumer Spending Slows
US Inflation Rate Falls to 2.1% in April, Consumer Spending Slows

In April, US inflation as measured by the Federal Reserve's preferred index rose by 0.1%, lowering the annual rate to 2.1%. Core inflation remained steady at 2.5% annually. Consumer spending slowed sharply to a 0.2% increase, accompanied by a rise in the personal savings rate to 4.9%. Recent tariffs have yet to affect prices fully, but concerns about their inflationary impact persist. Personal income outpaced expectations, growing 0.8%, signaling ongoing wage growth amid cautious consumer behavior. The Federal Reserve remains focused on data-driven policy amid trade uncertainties.

Why JPMorgan CEO Jamie Dimon Maintains a Cautious Economic Outlook
Why JPMorgan CEO Jamie Dimon Maintains a Cautious Economic Outlook

Jamie Dimon, CEO of JPMorgan Chase, consistently projects a cautious economic outlook even as his bank records historic profits and market leadership. Over 20 years, Dimon’s warnings about economic risks have intensified alongside JPMorgan's growth. Experts suggest his cautious tone helps prepare the bank for future challenges and avoids complacency amid persistent financial and geopolitical uncertainties.

Ukraine Strikes Russian Airbases and Defence Plant Amid Kyiv Bombardment
Ukraine Strikes Russian Airbases and Defence Plant Amid Kyiv Bombardment

After Russian missile strikes targeted Kyiv and other cities, Ukraine launched coordinated attacks on key Russian military bases and a defence production plant. The strikes damaged the Engels and Dyagilevo airbases, crucial to Russia's bomber and refuelling capabilities, fuel depots in Saratov, and a critical defence plant in Tambov province. These events underscore escalating military tensions despite concurrent peace negotiations.

Swiss Government Proposes Stringent Capital Rules Impacting UBS Significantly
Swiss Government Proposes Stringent Capital Rules Impacting UBS Significantly

The Swiss government has proposed stringent capital regulations compelling UBS to increase its core capital by $26 billion following its takeover of Credit Suisse. The measures include full capitalization of foreign units and a potential reduction in share buybacks, aimed at strengthening UBS's resilience and reducing systemic risk. While supported by the Swiss National Bank, these rules may challenge UBS's competitiveness and affect shareholder returns, with full compliance expected by 2034.