May Jobs Report

U.S employers added over 139,000 jobs in May. That is lower than the 147,000 jobs added in April, yet it beat many economists’ predictions. Monthly job reports are highly anticipated, giving us a read on unemployment and labor force strength. Many also use this as an indicator of overall economic health.

On top of 139,000 jobs added, the unemployment rate stood steady at around 4.2%, up 0.2% from the previous year. This report tells us that employers may be a little more uncertain in the face of economic uncertainty due to international trade worries, but there hasn’t been a steep drop in hiring. Wages have continued to float slightly above inflation.

In the years following the pandemic, job growth has slowed ticking back up slightly in 2023. The gain has been enough to fuel consumer spending and approach a “soft landing”, lowering inflation without triggering a recession.

Labor participation fell by 0.2% to 62.4%, and while this is brad-based, it is more concentrated in women over 55 and men aged 25-54. More people who are not working were indicated to be in training or school.