The U.S. economy added 139,000 jobs in May, signaling a slowdown in hiring that has prompted President Trump to call for a significant interest rate cut.
At a Glance
- U.S. employers added 139,000 jobs in May, exceeding forecasts but down from April’s revised 147,000
- The unemployment rate remained steady at 4.2% for a third consecutive month
- March and April job gains were revised downward by a total of 95,000
- Healthcare and hospitality sectors led job creation; federal employment fell by 22,000
- President Trump urged the Fed to slash interest rates by one full percentage point
Labor Market Shows Signs of Cooling
The U.S. added 139,000 jobs in May, narrowly beating expectations of 125,000. However, this marked a modest decline from April’s revised figure of 147,000. Job growth averaged 124,000 per month in 2025—well below the 2024 pace of 168,000.
The unemployment rate held steady at 4.2%, but a drop in the labor force participation rate—from 62.6% to 62.4%—suggests some workers may be exiting the workforce entirely. Roughly 625,000 people left the labor force in May.
The healthcare sector led job gains, adding 62,000 new positions, followed by 48,000 in leisure and hospitality. By contrast, federal government jobs dropped by 22,000, reflecting cost-cutting measures in the public sector.
Watch a report: U.S. Jobs Report: May 2025 Analysis.
Political Pressure on the Federal Reserve
President Trump responded to the report by demanding the Federal Reserve cut interest rates by a full percentage point. In a statement, Trump claimed Fed Chair Jerome Powell is “costing the country trillions” by keeping rates too high, despite what he calls a stable and resilient economy.
The Fed has held its benchmark rate steady at 4.25% to 4.5% since December 2024, maintaining a cautious approach amid mixed economic indicators. Although inflation has eased, Fed officials have signaled they want clearer signs of slowing before considering cuts.
With the labor market cooling and political pressure mounting, all eyes are now on the central bank’s next move—a decision that could shape both the economy and the 2024 campaign trail.
