Payroll employment grew by 139,000 in May with unemployment unchanged at 4.2%, according to a report from the Bureau of Labor Statistics released Friday.
Republicans and the Trump administration are touting the numbers as evidence of the administration’s “pro-growth policies.” However, some financial experts warn the market is showing signs of cooling.
White House Press Secretary Karoline Leavitt attributed the numbers to a “booming economy” and the administration’s American first policy.
In a statement, Leavitt said, “President Trump’s America First Economic Agenda has created a BOOMING economy – jobs are up, unemployment is down, wages are increasing, and inflation is dead. More than 139,000 good jobs were added to the private sector in May, all accounted for by American-born workers. Americans should continue to trust in President Trump, who continues to beat expectations.”
The inflation rate of 2.3% through April – May will be released on Wednesday – is the lowest since 2021 when former President Joe Biden inherited 1.4% in January and it was still 1.7% in February. It reached 9.1% in June 2022 and was 3% for January of this year.
Despite the White House’s rosy outlook, economists say the market is showing signs of cooling, warning that wages may change.
“The labor market is strong, but cooling,” said Jamie Cox, managing partner for Harris Financial Group. “I expect this report, with all its revisions to bring the Fed back into cutting mode in July. Wages are stable, for now, but that is likely to change in the coming months. One of the biggest factors with labor is housing – the housing market is showing early signs of trouble, and a cooling labor market will make that worse.”
Jobs report at a glance:
• There were 139,000 nonfarm payroll jobs added in May, more than forecasters expected.
• Average hourly earnings rose by 0.4%, 0.1% higher than expected.
• Private employers added 140,000 jobs in May. Of that, 62,000 were in the health care industry, 48,000 in the leisure and hospitality industry, 16,000 in social assistance, the financial industry accounted for 13,000, and private education added 9,000 jobs.
• The government sector lost 1,000 jobs, with the report adding that local government gains offset 22,000 federal jobs lost.
• The manufacturing market lost 8,000 jobs.
