U.S. job growth slowed slightly in May to 139,000, amid cuts in the federal workforce, and despite an on-again, off-again tariff policy.
The unemployment rate was unchanged at 4.2%, according to the Bureau of Labor Statistics.
Health care, leisure and hospitality and social assistance continued to see job gains.
The bureau also revised downward job figures from April and March, shaving off 95,000 jobs from previous estimates.
Federal government employment fell by 22,000, and has dropped by 59,000 since January, as the Trump administration has slashed the size of the workforce. But the figures do not include those on paid leave or who are receiving severance.
Employment in movies and music production remained largely unchanged, falling by 200 jobs to 409,600 from April. Jobs in broadcasting and among content providers grew by 900 to 336,000.
Justin Wolfers, professor of economics at the University of Michigan, wrote on X, “If you were an optimist yesterday, you’re still an optimist today, though there’s nothing here to fuel extra optimism. And if you were worried about a looming downturn, you haven’t seen it yet, though there’s plenty of data to fuel your continuing unease.” He noted that payrolls grew at an average rate of 135,000 over the past three months, “a notable slowing.”
Jason Furman, professor of economic policy at Harvard, wrote that it was a “boring jobs report, in a good way.”
“Don’t read anything into the jobs growth being lower than it had been last year, with net immigration down so much steady-state employment growth is down,” he wrote. “Hard to see any adverse impact of tariffs on real economy.”
