Job growth in the U.S. slowed in May compared to the previous two months, as employers appeared to scale back hiring amid ongoing uncertainty surrounding trade, tax, and monetary policy, but the numbers still surpassed expectations, reports noted on Friday.
The Labor Department reported Friday that 139,000 jobs were added in May—slightly above the 130,000 forecast by economists surveyed by LSEG, but down from the initially reported 177,000 jobs added in April and the 185,000 gained in March.
White House Press Secretary Karoline Leavitt praised the news, stating it showcased President Donald Trump’s effective economic policies.
“President Trump’s America First Economic Agenda has created a BOOMING economy — jobs are up, unemployment is down, wages are increasing, and inflation is dead,” she said on social media.
“More than 139,000 good jobs were added to the private sector in May, all accounted for by American-born workers. Americans should continue to Trust in President Trump, who continues to beat expectations,” she added. On his Truth Social platform, Trump wrote in all caps: “GREAT JOB NUMBERS, STOCK MARKET UP BIG! AT THE SAME TIME, BILLIONS POURING IN FROM TARIFFS!!!”
The unemployment rate held steady at 4.2% in May, matching the rate from the previous two months and aligning with expectations from LSEG. However, job growth figures for March and April were both revised downward. March’s total was reduced by 65,000—from 185,000 to 120,000—while April’s was cut by 30,000, from 177,000 to 147,000. In total, employment gains for those two months were 95,000 lower than initially reported, Fox Business noted. Private sector payrolls grew by 140,000 in May, surpassing the 120,000 projected by LSEG economists.
Government employment overall declined by 1,000 jobs for the month. The federal government saw the largest drop, cutting 22,000 positions, bringing total federal job losses to 59,000 since January. The Bureau of Labor Statistics noted that employees on paid leave or receiving severance are still counted as employed in the establishment survey. Local governments added 21,000 jobs in May, while state government employment remained flat.
In the manufacturing sector, employers cut 8,000 jobs—more than the 5,000 decline forecast by LSEG. Health care employment added 62,200 jobs in May, a faster rate than the average monthly gain of 44,000 over the last year. Job gains were focused in hospitals (+29,900), ambulatory health care services (+28,700) and skilled nursing care facilities (+6,300), Fox noted.
The leisure and hospitality sector added 48,000 jobs in May, with the majority of gains—30,200—coming from food services and drinking establishments. This monthly increase was more than double the 12-month average of 20,000 jobs. Employment in social assistance also grew, rising by 16,100 jobs in May, driven primarily by hiring in individual and family services.
