WASHINGTON — Despite a slowdown in hiring, the U.S. job market demonstrated resilience with 139,000 jobs added in May, slightly surpassing economists' expectations of 130,000. This growth comes amidst uncertainties surrounding President Donald Trump’s trade wars.
Key Highlights from the Labor Department Report
- Unemployment rate held steady at a low 4.2%.
- Healthcare sector saw job additions, while the federal government cut 22,000 jobs, the largest reduction since November 2020.
- Average hourly wages increased by 0.4% from April and 3.9% from a year ago, exceeding forecasts.
Economic Outlook and Challenges
Trump’s aggressive trade policies, including tariffs on imports, have clouded the economic outlook, sparking fears of a potential recession. However, the impact on the job market remains unclear, with government data yet to reflect significant damage.
Sector-Specific Impacts
- Manufacturing and services businesses reported contractions last month.
- Job openings rose unexpectedly to 7.4 million in April, but layoffs increased and fewer Americans quit their jobs, indicating decreased confidence in finding better opportunities.
Long-Term Trends
- Average monthly job growth has declined to 144,000 this year, down from previous years.
- Immigration policies and federal workforce reductions are expected to further strain the labor market.
Global Economic Context
While the U.S. job market shows signs of deceleration, global markets exhibited mixed performances, with Asian markets generally rising and European markets experiencing declines.
Paul Wiseman, The Associated Press
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