The economy added 139,000 jobs in May and the unemployment rate 4.2%, the Bureau of Labor Statistics reported Friday.
Investors had expected roughly 127,000 new jobs and for the unemployment rate to hold steady at 4.2%.
The underlying reality
Friday’s report suggests that job growth has been decelerating in recent months.
It is helpful to look at the overall trend for the labor market. With significant downward revisions to the numbers for in March and April, the three-month moving average of job gains was just 135,000 in May. That is still above the rate needed to keep up with population growth, though.
Roughly 112,000 new payroll jobs are needed each month to keep unemployment from rising, according to the Federal Reserve Bank of Atlanta. Separate estimates that take into account the full extent of the Biden-era immigration surge put the number as high as 200,000, although that has likely changed in recent months, as the Trump administration has dramatically curbed unauthorized border crossings.
Prime-age employment, relative to the overall population, is strong by historical standards, although it appears to have peaked in recent months.
This is a developing story.
