In May, the US economy added 139,000 jobs, marking a slowdown attributed to the ongoing trade war uncertainty under President Donald Trump. Despite a robust labor market in April, May saw a decrease in new job additions, with the unemployment rate holding steady at 4.2%. The report revealed a loss of 22,000 federal jobs due to the Trump administration’s efforts to streamline government operations, resulting in a total of 59,000 federal job cuts since January.

The Bureau of Labor Statistics revised down job creation figures for March and April, indicating 95,000 fewer jobs created over those two months. President Trump urged Federal Reserve Chair Jerome Powell to cut interest rates following the release of the report. Economists had anticipated a slowdown in job growth following earlier indications of a cooling job market, with private-sector payrolls only increasing by 37,000 in May, the lowest gain in over two years.

Other economic indicators painted a mixed picture: the Institute for Supply Management’s purchasing managers’ index hit a low in April, while consumer sentiment remained stable but with a notable drop in April, the largest decline since 1990. Despite these trends, inflation rates in April showed a slight decrease from March, with economists predicting a gradual impact from Trump’s tariffs likely to manifest in the summer months. The overall economic landscape reflects a delicate balance between resilient consumer sentiment and the evolving impact of trade policies on job growth and inflation.