US job growth slows in May, unemployment rate steady at 4.2%
The US unemployment rate remained at 4.2% for the third straight month. (Freepik pic)
WASHINGTON : US job growth slowed in May amid headwinds from tariff uncertainty, while the unemployment rate held steady at 4.2%, potentially giving the Federal Reserve (Fed) cover to delay resuming interest rate cuts for a while.
Nonfarm payrolls increased by 139,000 jobs last month after rising by a downwardly revised 147,000 in April, the labor department's bureau of labor statistics said in its closely watched employment report today.
Economists polled by Reuters had forecast 130,000 jobs added after a previously reported 177,000 rise in April.
Estimates ranged from 75,000 to 190,000 jobs. The unemployment rate remained at 4.2% for the third straight month.
The economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population.
That number could decline as President Donald Trump has revoked the temporary legal status of hundreds of thousands of migrants amid an immigration crackdown.
Much of the job growth this year reflects worker hoarding by businesses amid Trump's flip-flopping on tariffs, which economists say has hampered companies' ability to plan ahead.
Opposition to Trump's tax-cut and spending bill from hardline conservative Republicans in the US Senate and billionaire Elon Musk adds another layer of uncertainty for businesses.
Employers' reluctance to lay off workers potentially keeps the US central bank on the sidelines until the end of the year.
Financial markets expect the Fed will leave its benchmark overnight interest rate unchanged in the 4.25%-4.50% range this month, before resuming policy easing in September.
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Malay Mail
an hour ago
- Malay Mail
Singapore watching US tariff talks ‘very carefully', says foreign minister
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The Star
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- The Star
Nepal's US trade preference at risk amid growing tariff tensions
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'There is uncertainty in US tariff policy, with new tariffs being imposed, suspended, and then reinstated without predictable patterns.' Ojha noted that Nepal's trade benefits under the Nepal Trade Preference Programme are set to expire this year, potentially creating new hurdles for exporting goods to the US market. 'This tariff uncertainty increases the cost of trade, which can have a wider impact on economies that heavily rely on imports,' he said. 'The erratic US tariff policy is not a healthy sign for global trade.' The US recently increased tariffs on steel and aluminium from 25 per cent to 50 per cent and imposed 45–50 percent tariffs on products from several countries, though these have been temporarily suspended for 90 days. According to Ojha, one silver lining is that the tariff differential between Nepal and other countries has temporarily improved the competitiveness of Nepali goods. 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The Sun
4 hours ago
- The Sun
Billion-dollar battery plant pauses construction in US amid electric vehicle, tariff uncertainty
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