U.S. Labor Market Slowing Down, Only Adding 75000 Jobs in May

May jobs report: Hiring slowed down in May, just 75,000 jobs added

Although it's hard - even for an economist like me who studies economic policy - to interpret the data reported in any one jobs report as the beginning of a trend, the latest numbers do suggest the Federal Reserve may have to lower its benchmark interest rate to shore up the economy. But the number was also above the 27,000 jobs estimated by the ADP National Employment Report.

Then last week, Trump opened up a new trade war front against another major U.S. trading partner - Mexico - warning that he will impose five-percent tariffs on all Mexican goods on Monday unless more is done to stem the flow of undocumented migrants seeking to enter the United States via Mexico.

Economists had expected 185,000 jobs added in May, with some citing the hiring of potentially tens of thousands of workers for the decennial Census. Hiring in the previous two months was revised lower by a combined 75,000.

Unemployment remains at 3.6 percent, a 50-year low, while wages have grown 3.1 percent since this time last year. On the bright side, the USA unemployment rate was only at 3.6%.

Prospects for a rapid rate cut propelled another rally on Wall Street Friday.

In April, payrolls grew by a robust 263,000 while retail sales and manufacturing sent mixed signals.

Vettel takes first pole of 2019 in Canada
The Ferrari driver kept with Hamilton through the first two sectors before beating him in the last. Bottas edged out the Red Bulls of Dutchman Max Verstappen and Pierre Gasly of France.

Stocks have surged since Fed Chairman Powell said on Tuesday the central bank would "act as appropriate to sustain the expansion", suggesting a possible rate cut as a solution to weakening economic data and uncertainty over trade. Chief US economist Tom Porcelli at RBC Capital Markets in NY said: "This number is just going to feed the narrative of the Fed imminently cutting rates".

In May, wages rose 3.1 per cent from a year earlier, down slightly from last month's gain of 3.2 per cent.

USA hiring stumbled in May as employers added just 75,000 jobs, a sign that businesses have become more cautious in the face of weaker global growth, widening trade conflicts and perhaps some difficulty finding enough workers. Still, it's below last year's pace of 225,000.

Cardillo said trade tensions may have made companies more hesitant to hire.

We got some sobering news today about the USA job market. President Donald Trump's threat to impose tariffs on Mexico following additional tariffs on China, could send the global economy toward a recession, some economists warn. If those who looked for a job in preceding 12 months were included as well as those who had a part-time job but wanted a full-time one, the rate declined to 7.1 percent-the lowest since December 2000. The jobless rate was partly pushed down by workers dropping out of the labour force over the last four months. Just three months earlier, wages had been rising at their fastest rate in a decade but gains have moderated since.

"We may have reached a peak in hiring", Peter Cardillo, chief market economist at Spartan Capital Securities, told The Post, adding that Friday's data "renewed hopes that the Fed is likely to cut".


  • UK Prime Minister Theresa May formally steps down as Conservative Party leader

    UK Prime Minister Theresa May formally steps down as Conservative Party leader

    Naturally reserved and reliant on her husband and a few close aides, she often says she is just quietly "getting on with the job". Labour managed to hold the seat by a wafer-thin majority of 683 votes with a candidate who's been accused of anti-Semitism.
    Kerr says Durant will practice ahead of Game 5

    Kerr says Durant will practice ahead of Game 5

    He's one of the best competitors I've ever been around". "I'm a little sore but more mentally and emotionally". Durant was supposed to practice on Thursday prior to Friday's Game 4 but ultimately was unable to do so.
    Sarri joining Juventus would be ‘a betrayal’ - Lorenzo Insigne

    Sarri joining Juventus would be ‘a betrayal’ - Lorenzo Insigne

    Meanwhile, Hazard had hoped to seal his move to Real Madrid this week, but will now have to wait until after the global break. Napoli and Italy striker, Lorenzo Insigne , has branded Chelsea manager, Maurizio Sarri as a "betrayer".
  • Oil prices rise over possible postponement of tariffs on Mexico, OPEC cuts

    Oil prices rise over possible postponement of tariffs on Mexico, OPEC cuts

    Saudi Arabia has cut supply by more than required by the OPEC+ deal in a bid to stop inventories building up. WTI had fallen to a session low of $50.66 after the report, the lowest level since January 15.
    Danny Green’s three-point success key to NBA Finals story arc

    Danny Green’s three-point success key to NBA Finals story arc

    Toronto broke out its box-and-one defense against Warriors guard Stephen Curry again, and Golden State's offense sputtered. They scored 42 points in the first half but 61 in the second half while holding the Golden State Warriors to 92 points.
    Google Stadia details, game lineup, and price revealed

    Google Stadia details, game lineup, and price revealed

    Stadia is our game platform that uses different elements of Google technology, from our data centres to our hardware. The monthly subscription, Stadia Pro , will cost $9.99 United States dollars and will include the following perks.
  • Nintendo E3 2019 Games: Zelda, Pokemon, Luigi's Mansion, And More

    Nintendo E3 2019 Games: Zelda, Pokemon, Luigi's Mansion, And More

    This year we expect to see 14 first-party title from Microsoft - that's the most we've ever seen at an Xbox press conference. Like it does every year, Nintendo is opting to publish a special E3 Direct instead of holding a press conference .

    John Cena Joins Cast of 'Fast & Furious 9′

    So, sorry to disappoint you, person who expected John Cena to play a cowardly weakling in the next Fast & Furious movie. John Cena has commented on landing a role in one of the biggest films thus far in his acting career.
    Australian Broadcasting Corp. head concerned by police raid

    Australian Broadcasting Corp. head concerned by police raid

    Acting police commissioner Neil Gaughan defended the actions as independent and necessary, adding that more raids were possible. Dutton denied involvement in the police investigations and said his office was notified after the raids were carried out.
  • Proposed US tariffs on Mexico suspended indefinitely

    Proposed US tariffs on Mexico suspended indefinitely

    The U.S. -Mexico Joint Declaration released Friday mentions nothing about agriculture sales as part of the agreement. Earlier Friday, Trump tweeted there was a " good chance " that the US would reach a deal with Mexico on migration .
    YouTube bans Holocaust denial videos in policy reversal

    YouTube bans Holocaust denial videos in policy reversal

    However YouTube said Crowder's feedback did no longer violate the policies because they had been sandwiched between "debate". YouTube also announced Wednesday it was "strengthening enforcement of our existing YouTube Partner Program policies".
    Putin says US  military intervention in Venezuela would be a disaster

    Putin says US military intervention in Venezuela would be a disaster

    They discussed joint efforts to resolve the crisis in Syria and attempts to stabilize the situation in Venezuela , Putin said . This story was first published on CNN .com, "Xi meets "best and bosom friend" Putin amid raging U.S. trade war ".


Latest news

Modi Makes No Mention of Chandrababu in His AP Visit
They also reiterated an abiding faith in, and commitment to democracy, development and peaceful co-existence. Modi addressed a thanks-giving public meeting organized by the Andhra Pradesh BJP at Renigunta near here.

Watch the Xbox E3 2019 press conference live right here
We don't have a firm release date beyond 2020, but it'll be available with Xbox Game Pass. Xbox Game Pass for PC lets you download and play the games offline for up to 30 days.

Keanu Reeves Revealed He'll Be In 'Cyberpunk 2077'
Cyberpunk 2077 is coming to Steam , GOG , and the Epic Games Store on April 16th, 2020. Cyberpunk 2077 is gonna be a big deal next year.

The worldwide space station: The next hot tourist destination
There will be up to two short private astronaut missions a year, with the stay on board costing $35,000 (£27,500) a night. There will be two 30-day missions per year for tourists aka private astronauts who can visit the ISS. .

Watch 14 Minutes of Stunning STAR WARS: JEDI FALLEN ORDER Gameplay
Players will meet Cal on Bracca, a brand-new Star Wars planet and one of several new locations introduced in the game. It begins on Kashyyyk under the heel of the Empire's boot, with Kal looking to restart the Jedi Order.

Huawei agrees to develop 5G in Russian Federation
Huawei relies on licences for ARM's chip architecture designs of USA origin in smartphone production. United States companies will have to seek approval for sales to Huawei once the list takes effect.

Federation Internationale de Football Association 20 is out in September with a focus on micro skill
In case you're wondering, the game can already be pre-ordered here . Unlock more items as you progress through various challenges.

Single ticket in California claims $530 million Mega Millions jackpot
A lucky lottery player in California was the sole victor of the $530 million Mega Millions jackpot for the drawing held on June 7. It's a 1 in 12,607,306 shot to win the second prize of at least $1 million by matching five numbers.

Britain orders EVACUATION as Sudan crisis boils over
The military council says Monday's raid was targeting criminals in an area adjacent to the camp and got out of hand. On Monday , the Doctors Committee put the death toll from the crackdown at 40.

Beyoncé's savage reaction to woman who talks to Jay-Z
The series of tweets ended with a final statement, saying, "Curran says she then went to go get them those drinks". I can't believe our players go through this. "That kids go through this, '" Shelburne finished.

Does Dark Phoenix Have a Post-Credits Scene?
The result was a superhero movie that, whether by creative spark or simple necessity, emphasized character over spectacle. During her youth, Professor X hides certain truths from her that will come back to bite them both in the future .

Take A Glimpse As Ivanka Trump Shares Her Day At The Palace
The three-day visit continues tonight with a state dinner hosted by the Trumps at the US Ambassador's residence, Winfield House. The president is in the United Kingdom for a three-day state visit , which includes the 75th anniversary of the D-Day landings.

Djokovic embracing history and Thiem's 'Ringo Starr' threat at French Open
Now, every time they meet, tennis fans should treasure it because we have no idea how many more epic battles we'll see. ET) on Friday, June 7. "I didn't see it today, but the way she must have played must have been incredible", Barty said.

Trump again threatens PRC with further $300 bn in tariffs
Earlier this week, border officials said nearly 133,000 people were arrested at the border in may alone. He added Thursday in comments to reporters, "We've told Mexico the tariffs go on, and I mean it too".

Man Utd have completed the signing of youngster Daniel James from Swansea
The 21-year-old will cost United around £15m and is the Red Devils' first major signing of what promises to be a very busy summer. James was in Manchester yesterday and is understood to have had a medical before joining up with the Wales squad.

Other news