JUNE 9, 2025 – FEWER NEW JOBS IN MAY, UNEMPLOYMENT RATE HOLDS
Job growth slowed in May with the addition of 139,000 new positions, as employers are cautious about the economic outlook and the impact the new tariffs will have on business. The unemployment rate for May was 4.2 percent, unchanged from April. Economists call this a low-hiring and low-firing environment, with employers taking a cautious approach to change in the workforce.
Even though job growth slowed, it still bettered economists’ expectations of 122,000 new positions. However, revisions to the data reported in March and April, added up to 95,000 fewer jobs than previously estimated. New claims for unemployment rose last week to a seven-month high. The cuts in government positions are in the fourth month of decline, with a cumulative loss of 59,000 jobs, however many of the losses have yet to be reflected due to severance pay or paid leave.
The May data should not affect The Fed’s wait-and-see stance. Officials have stated rates will not change at their meeting next week, and a change at their July meeting is also unlikely.