Jobs report May 2025:

The latest jobs report from the Bureau of Labor Statistics showed that hiring remained steady in May, despite concerns about tariffs and a possible economic slowdown. Nonfarm payrolls increased by 139,000, slightly surpassing expectations. The unemployment rate held firm at 4.2%, with average hourly earnings rising by 0.4% for the month.

Lindsay Rosner, from Goldman Sachs Asset Management, noted that the jobs growth was stronger than expected, highlighting the resilience of the US labor market. The health care sector saw the most significant gains, adding 62,000 jobs, while leisure and hospitality added 48,000 and social assistance added 16,000. However, government jobs saw a decline of 22,000.

Despite the positive numbers, there were some concerns in the report. The April job count was revised downward by 30,000, and March’s numbers were adjusted by 65,000. Additionally, there were disparities between the establishment survey and the household survey, indicating some volatility in the job market.

Daniel Zhao, an economist at Glassdoor, expressed caution about the future of the job market, citing economic headwinds and the uncertainty surrounding tariffs. Federal Reserve officials are closely monitoring the situation, with concerns about potential inflation due to tariffs.

The Fed is expected to maintain a patient approach regarding interest rates at its next policy meeting. With the job market holding steady for now, but uncertainty looming, the Fed is likely to proceed cautiously. The report comes at a critical time as Fed officials enter a quiet period before their next meeting, where they will refrain from making any policy remarks.

Overall, the May jobs report reflects a mixed picture of the US economy, with positive job growth but lingering concerns about external factors impacting future growth. As the Fed continues to assess the situation, market participants are watching closely for any signs of potential risks to the economy.