Job Growth Steady Despite Slowing Hiring Trends: 139,000 Positions Added in May

Citing data from the Department of Labor, U.S. employers have slowed down their hiring pace recently but still managed to add a respectable 139,000 jobs last month amidst ongoing concerns regarding President Donald Trump’s trade policies.

This figure is a slight decrease from the revised total of 147,000 jobs added in April. Economists had anticipated around 130,000 new positions for May; though, revisions to previous months reduced job totals by about 95,000.

Payroll employment increases by 139,000 in May; unemployment rate unchanged at 4.2% https://t.co/ZwrVfLviqL #JobsReport #BLSdata — BLS-Labor Statistics (@BLS_gov) June 6, 2025

the unemployment rate remains low at just 4.2%. While healthcare sectors saw job growth during this period, the federal government cut back on its workforce by shedding around 22,000 positions—the largest drop since late November of the previous year—due to Trump’s hiring freeze and cuts.

A recent publication by Bloomberg highlights that average hourly wages increased by about four-tenths of a percent compared to April and are up nearly four percent year-over-year—slightly exceeding expectations.

The unpredictable nature of Trump’s policies has created an uncertain economic landscape that raises concerns over potential recession risks for America’s economy—the largest globally. His tariffs on imports are likely driving up costs for domestic companies reliant on foreign materials and components which could lead them to reduce hiring or even lay off employees.

The impact is already visible as billionaire Elon Musk’s initiative aimed at improving government efficiency has resulted in significant cuts within federal employment and canceled contracts with various agencies. Additionally, stricter immigration policies may hinder businesses’ ability to find sufficient labor force.

Despite these challenges looming over the economy’s horizon—so far ther hasn’t been any clear evidence reflected in official economic reports indicating severe damage from these changes yet.

The resilience shown by both the U.S. economy and job market over recent years is noteworthy; even after multiple interest rate hikes implemented by Federal Reserve officials throughout late ’22 into ’23—which many believed would trigger a recession—the anticipated downturn hasn’t materialized as expected thus far.

The big picture takeaway on May jobs report: p >1) A recession does not look imminent
2) But…hiring has slowed down.
3) Only healthcare and hospitality are hiring much now
4) -49K federal gov’t jobs shed as December
5) -95K down in job revisions for March & April p > div > blockquote >

This year alone has seen American employers adding fewer than an average of124k new roles monthly—a decline compared with168k last year or216k during ’23—and substantially lower than380k recorded back in ’22 when recovery efforts were underway post-COVID layoffs.

Former Fed economist Claudia Sahm points out that today’s labor market isn’t nearly as robust as it was two or three years ago when immigration levels were high leading to record job openings across various sectors.

“Any signs indicating weakness within this week’s data could reignite fears surrounding another recession,” Sahm noted recently via her Substack platform “It remains too early yet fully gauge how tariffs or other policy shifts will affect our labor market moving forward.”

Recent reports have painted mixed signals regarding economic health overall.

On one hand ,the Labor Department revealed unexpectedly high job openings reaching7 .4 million during April—a seemingly positive indicator—but together reported rising layoffs alongside declining numbers quitting their positions suggesting diminished confidence among workers seeking better opportunities elsewhere .

Surveys conducted through Institute For Supply Management indicate contraction occurring within both manufacturing & service industries throughout last month while applications filed for unemployment benefits surged hitting highest levels seen within eight months’ time frame .

Despite these fluctuations ,jobless claims remain relatively low historically speaking implying reluctance among employers towards cutting staff amid uncertainties tied directly back towards Trump administration initiatives .They likely recall difficulties faced previously trying rehire individuals following massive layoffs experienced during brief COVID-induced recessions when unexpected strength returned swiftly thereafter.In summary ,the current state reflects deceleration trends evident across all fronts ;thus far this calendar year American firms averaged144 k newly created roles monthly which pales against168 k achieved previously along with216 k noted earlier plus record highs reached upwards603 K witnessed post-pandemic recovery efforts initiated back then.

Trump’s erratic tariff strategies continue impacting overall economic performance negatively evidenced through GDP figures showing declines registered at0 .2 % annual rates between January-March periods observed earlier this fiscal cycle .A surge witnessed amongst imports contributed significantly reducing growth rates observed first quarter due companies rushing procure foreign goods ahead impending tariff implementations resulting later plunging import volumes recorded16 % drop experienced come April timeframe once levies took effect ultimately leading fewer available warehouse/storage related occupations alongside trucking operations affected adversely too according Michael Madowitz economist affiliated Roosevelt Institute think tank.