The U.S. Bureau of Labor Statistics released the new jobs numbers today. Fed chairman Jerome Powell said on Tuesday the U.S. central bank was closely monitoring the implications of the trade tensions on the economy and would 'act as appropriate to sustain the expansion'. Wage growth was also slow.
On the other hand, the BLS slashed its job growth estimated for March and April by 75,000 in total, bringing the 12-month average growth to 196,000 a month-the first time it dropped below 200,000 since April 2018.
Lawrence Yun, chief economist for the National Association of Realtors, said the fact that the US had another month of job additions should help fuel demand for housing. The government also revised down the job growth for March and April by a combined 75,000. But the number was also above the 27,000 jobs estimated by the ADP National Employment Report.
Topsy-turvy thinking is back in style on Wall Street.
May marked the 104th-straight month of job gains for the nation, a record streak that has helped many Americans, including those with disabilities or criminal histories, to find jobs.More news: "Negotiations are going well" as Arsenal close in on top winger target
Hiring slowed across all sectors in May, with the share of industries showing job gains during the month the smallest since July 2016.
Keeper Security, a cybersecurity firm, said last month that it would expand its Chicago headquarters and add 130 jobs over the next six months to its roughly 160 current staff.
Meanwhile, average hourly wages rose 0.2 percent compared to April to 27.83 US dollars, disappointing economists who had hoped for slightly stronger gains.
"On balance, we still think Fed officials will want to see evidence of more sustained weakness before taking action, but we are increasingly convinced that the Fed will begin cutting interest rates later this year", Andrew Hunter, senior USA economist for Capital Economics, wrote in a note to clients on Friday. The average workweek was unchanged at 34.4 hours last month.
The moderation in wage gains, if sustained could cast doubts on the Fed's optimism that inflation would return to the United States central bank's 2 per cent target.
Or, an unexpectedly weak employment report could intensify concerns that after a healthy first quarter, the USA economy is actually stumbling.More news: Uber announces helicopter booking service
Professional and business services, which include high-paying accounting and engineering jobs, have added workers at a healthy pace this year.
The Atlanta Fed is forecasting gross domestic product rising at a 1.5 per cent annualized rate in the second quarter. The economy grew at a 3.1 per cent pace in the first quarter.
The unemployment rate has held steady between 4 percent and 3.7 percent for more than a year before the April jobs report showed it drop to 3.6 percent. A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, dropped two-tenths of a percentage point to 7.1 per cent last month, the lowest since December 2000.
Manufacturing continues to be a soft spot, with just 3,000 factory jobs added in May.
US House of Representative Speaker Nancy Pelosi, a Democrat, said the employment report was 'a disturbing sign that the administration's disastrous special interest agenda is hollowing out our economy'.
"The slowdown is really coming from the sectors that are most susceptible to trade tensions like manufacturing, construction, mining and logging".More news: Chelsea file appeal against transfer ban to CAS - full statement revealed
Flooding in the central US may have reduced the May payroll number by 40,000 jobs, Hassett said on Bloomberg Television.