Employers across the U.S. added 139,000 jobs in May new federal data shows, a sign the labor market remains steady despite economic headwinds from tariffs.
The numbers
Payroll gains in May exceeded economists’ forecast of 130,000. Job growth over the last 12 months has averaged 156,800 per month, according to financial data firm FactSet.
The nation’s unemployment rate held steady at 4.2% for the third month in a row, matching forecasts by economists polled by FactSet.
Job growth was slightly weaker in May compared with previous months. Employers added 177,000 jobs in April and 228,000 in March.
What it means
While job growth was lower than in previous months, the data suggests that the job market remains resilient.
Ger Doyle, regional president at global workforce solutions company ManpowerGroup, wrote in an email that the jobs numbers reflect a labor market that is “steady but cautious in the face of ongoing uncertainty.”
Health care companies, along with the leisure and hospitality industry, saw the largest gains in employment last month, adding 62,000 and 48,000 jobs, respectively. Federal employment declined 22,000 in May and is down 59,000 since January, according to the Labor Department.
Other employment data released this week hinted at a potential slowdown in the labor market, with firms pulling back on hiring and issuing staff reductions amid tariff-induced economic uncertainty. Unemployment claims last week ticked up to their highest level in eight months, Labor Department data shows. The biggest increase in unemployment claims was in Kentucky, followed by the District of Columbia and Nebraska, according to a report from WalletHub data.
Still, the labor market remains healthy by most measures, with economists pointing the fact that over 100,000 jobs were added in May is a positive sign.
“Jobs came in slightly better than expected, removing some worries after the very cool ADP report on Wednesday this week,” said Brian Mulberry, client portfolio manager at Zacks Investment Management, in a note.
