span>span>Friday 6th June 2025/span>span> - 14:07 (BST)/span>/span>
The US labour market showed further signs of deceleration in May, with nonfarm payrolls rising by 139,000 - slightly above economists’ expectations of 130,000 but a modest decline from April’s downwardly revised figure of 147,000. The latest numbers reflect a cooling labour market, aligning with broader expectations of a soft landing for the economy.
Employment gains remained concentrated in a few key service sectors. Healthcare added 62,000 positions, led by hospitals (30,000) and ambulatory services (29,000). Leisure and hospitality saw an increase of 48,000 jobs, primarily within food services and drinking establishments, which contributed 30,000. Social assistance roles grew by 16,000. Conversely, the federal government continued to shed jobs - losing 22,000 in May and bringing cumulative losses since January to 59,000. Manufacturing also contracted, with payrolls down by 8,000.
Compounding the softer tone, figures for March and April were revised lower by a combined 95,000 - reinforcing the impression that momentum in job creation is waning. Although the data remain broadly consistent with a resilient labour market, the slower pace suggests that the post-pandemic hiring boom is firmly behind us. Analysts caution that recent policy shifts under the Trump administration, particularly around federal spending and regulatory rollbacks, may weigh further on hiring trends in the months ahead.
The moderation in job growth could also have implications for currency markets. While the upside surprise in May’s payrolls number is unlikely to shift the Federal Reserve’s cautious stance in the near term, a persistently softening labour market may dampen expectations of further tightening.
