PULSE POINTS:
❓What Happened: U.S. employers added 139,000 jobs in May, while the unemployment rate held steady at 4.2 percent.
👥 Who’s Involved: The Department of Labor, President Donald J. Trump, and economists tracking job market trends.
📍 Where & When: United States; May 2025, with the data being released on June 6, 2025.
⚠️ Impact: Federal government employment dropped by 22,000 in May, private sector jobs exceeded expectations, and average hourly earnings saw significant growth.
IN FULL:
The U.S. economy added 139,000 jobs in May, according to the Department of Labor‘s latest report, while the unemployment rate remained unchanged at 4.2 percent. Economists had anticipated 125,000 new jobs, making the actual figure a modest improvement over expectations.
Federal government employment saw a notable decline, with 22,000 fewer jobs in May. This drop contributes to a total reduction of 59,000 federal positions since January, aligning with President Donald J. Trump’s ongoing efforts to reduce the size of government.
The private sector added 140,000 jobs, surpassing the forecasted 120,000. Within this sector, the services industry recorded a significant gain of 145,000 jobs. However, the goods-producing segment of the economy contracted by 5,000 positions, including an 8,000-job decline in manufacturing. A revision to April’s manufacturing numbers, however, showed a gain of 5,000 jobs instead of the previously reported loss of 1,000 jobs.
The labor force participation rate dipped slightly to 62.4 percent in May from 62.6 percent in April, reflecting a minor contraction in workforce engagement.
Average hourly earnings increased by 0.4 percent in May, doubling the rate of April’s growth and exceeding economists’ expectations. Over the last year, wages have risen by 3.9 percent, outpacing inflation and signaling stronger purchasing power for workers.
Revisions to previous months’ job numbers revealed a downward adjustment of 65,000 jobs for March (to 120,000) and 30,000 for April (to 147,000). Combined, these revisions indicate 95,000 fewer jobs than initially reported for the two-month period.
Over the past year, the U.S. economy has averaged 149,000 new jobs per month, reflecting a steady pace of employment growth.