U.S. Job Growth Slows; Fed Expected to Hold Rates

The U.S. economy added 139,000 jobs in May, outpacing expectations but marking a slowdown from April’s revised gain of 147,000 jobs. The unemployment rate held steady at 4.2%, and average hourly wages increased by 0.4%. Health care, leisure, and hospitality sectors saw job growth, while federal government employment dropped by 22,000 due to continued workforce cuts. Job openings increased in April, but hiring momentum is slowing and layoffs are on the rise, reflecting a mixed labor market. Ongoing uncertainty from President Trump’s tariffs and economic policies continues to cloud the economic outlook. The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting as it monitors further labor market trends.