US job growth slows as trade tensions weigh on economy
The US added 139,000 jobs in May, pointing to a cooling labor market amid economic uncertainty.
The US economy created 139,000 new jobs in May, surpassing forecasts but still showing signs of a weaker labor market. This figure, released by the Bureau of Labor Statistics, came in higher than the 126,000 expected, but fell short of April’s revised total of 147,000.
The unemployment rate remained steady at 4.2%, suggesting that while hiring continues, it is not accelerating. Job cuts in the federal government also continued, part of a broader spending reduction campaign led until recently by Elon Musk through the Department of Government Efficiency.
Financial markets responded with caution. US Treasury yields moved slightly higher, as traders adjusted their expectations for Federal Reserve interest rate cuts. While two rate reductions are still anticipated for 2025, the possibility of only one cut is growing.
President Trump added pressure to the Fed earlier this week, demanding rate cuts following sluggish private-sector hiring data. Despite these concerns, the S&P 500 futures rose by 0.8%.
The OECD also issued a warning, stating the global economy may soon face its slowest growth since the pandemic. Much of this slowdown is attributed to the ongoing effects of Trump’s trade war.
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Jacob Lazurek
Coinpaprika
In the dynamic world of technology and cryptocurrencies, my career trajectory has been deeply rooted in continuous exploration and effective communication.
