US Adds 139,000 Jobs in May, Unemployment Rate Stable at 4.2%

The US economy added 139,000 new jobs in May, exceeding analyst forecasts of 126,000 but falling short of the revised April total of 147,000. This data, released by the Bureau of Labor Statistics, indicates a deceleration in the labor market's momentum.

The unemployment rate held steady at 4.2%, indicating that while job creation persists, it is not accelerating. Job losses in the federal government continued, as part of a broader spending reduction initiative led by the Department of Government Efficiency.

Financial markets reacted cautiously to the news. US Treasury yields edged higher as traders reassessed their expectations for Federal Reserve interest rate cuts. While two rate reductions are still anticipated for 2025, the likelihood of only one cut is increasing.

President Trump intensified pressure on the Fed earlier this week, calling for rate cuts in response to weak private-sector hiring data. Despite these concerns, S&P 500 futures rose by 0.8%.

The Organization for Economic Co-operation and Development (OECD) issued a warning, stating that the global economy may soon experience its slowest growth since the pandemic. Much of this slowdown is attributed to the ongoing effects of Trump’s trade war.