U.S. Job Growth Slows Amid Tariff Uncertainty
U.S. job growth slowed in May as import tariff uncertainties loom. Despite solid wage increases, labor market momentum ebbed, with significant job revisions for March and April. While unemployment held steady at 4.2%, labor force participation dropped, indicating diminished confidence. Employment gains were centered in healthcare, hindered by federal job cuts.
U.S. job growth experienced a slowdown in May, influenced by uncertainties surrounding import tariffs under the Trump administration. Solid wage growth persists, potentially allowing the Federal Reserve to delay interest rate cuts, while labor market momentum declined, as reported by the Labor Department on Friday.
The unemployment rate remained stable at 4.2% as 625,000 individuals exited the labor force, indicating a lack of confidence in the job market. Survey data suggests consumer optimism regarding job prospects is waning, with businesses impeded by tariff policy inconsistency. Conservative opposition to Trump's economic policies adds further uncertainty.
In May, nonfarm payrolls increased by 139,000, with significant job gains in healthcare and hospitality sectors. Federal government payrolls fell by 22,000 due to ongoing federal job cut campaigns. Despite challenges, hourly earnings rose by 0.4%, reflecting businesses' efforts to retain workers amid economic headwinds.
(With inputs from agencies.)
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