Hiring slowed last month, as President Trump’s tariffs and federal job cuts began to weigh on the U.S. economy.

Employers added 139,000 jobs in May, according to a report released Friday by the Labor Department. That’s a modest downshift from the previous month. Job gains in March and April were also revised down by a total of 95,000 jobs.

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The unemployment rate held steady at 4.2%, but the workforce shrank by 625,000 people.

Hospitals, restaurants and transportation companies continued to add workers in May. The federal government cut another 22,000 workers, although that was largely offset by hiring in state and local governments. Federal employment has fallen by 59,000 since the beginning of the year.

Factories also cut 8,000 jobs in May. A survey of factory managers released this week by the Institute for Supply Management showed Trump’s tariffs are a considerable drag on the manufacturing sector, where orders, output and employment all fell.

“We have entered the waiting portion of the wait and see, it seems,” one manager wrote. “Business activity is slower and smaller this month. Chaos does not bode well for anyone, especially when it impacts pricing.”

Average wages in May were up 3.9% from a year ago, according to the Labor Department report. That’s likely more than enough to outpace price increases.

News Source : https://www.opb.org/article/2025/06/06/hiring-slowed-in-may-as-employers-added-139000-jobs/