U.S. Employers Added 139,000 Jobs in May Despite Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. added 139,000 jobs in May, signaling continued economic resilience despite fears over Trump’s trade policies. While job growth has slowed compared to prior years, the unemployment rate held steady at 4.2%. Economists warn the impact of tariffs and policy shifts could surface later in 2025.
US Jobs Report Quick Looks
- Employers added 139,000 jobs in May, down from April’s 147,000.
- Unemployment remained at 4.2%, signaling steady labor conditions.
- Trump’s tariffs and budget cuts are fueling economic uncertainty.
- Hiring has slowed compared to previous post-pandemic years.
- Federal worker cuts and contract cancellations by DOGE may hit later.
- Job openings rose in April, but quits and layoffs raised concerns.
- Manufacturing and service sectors are now in contraction.
- First-quarter GDP fell 0.2% amid trade disruptions.
U.S. Employers Added 139,000 Jobs in May Despite Tariffs
Deep Look
U.S. Job Market Holds Firm With 139,000 Jobs Added in May, But Trump’s Trade War Shadows Outlook
WASHINGTON — The U.S. economy continued to add jobs in May, with employers creating a solid 139,000 new positions, according to Friday’s report from the Department of Labor. But the figures suggest a gradual cooling of the job market, as ongoing trade disruptions and aggressive policy shifts under President Donald Trump begin to cast a longer shadow.
The unemployment rate held steady at 4.2%, but hiring was down from April’s revised total of 147,000. The pace reflects increasing caution among employers amid an unpredictable economic landscape shaped by protectionist trade policies and sweeping administrative overhauls.
Policy-Driven Uncertainty Clouds Economic Outlook
Trump’s second-term agenda has introduced volatility into both global markets and domestic hiring. His administration’s aggressive tariff strategy — imposing taxes on hundreds of billions of dollars in imports — is expected to push up input costs for U.S. manufacturers and retailers. As prices rise, companies may scale back investment and labor costs.
Compounding this, Elon Musk’s Department of Government Efficiency (DOGE) has implemented large-scale cuts to the federal workforce and cancelled numerous contracts. These changes, while intended to streamline government spending, may reduce economic activity and slow job growth across key industries.
And Trump’s crackdown on immigration continues to limit the labor supply, especially in sectors that rely on foreign workers, such as agriculture, construction, and service industries.
Still, none of these shifts have fully materialized in headline labor statistics — yet.
Mixed Signals: Resilient Yet Slowing
Economists describe the current labor market as surprisingly durable, especially given the backdrop. Despite higher interest rates and policy disruptions, job creation remains positive, though diminished.
“Any signs of weakness in the data this week would stoke fears of a recession again,” wrote Claudia Sahm, former Fed economist and current chief economist at New Century Advisors. She cautioned that the full economic effects of tariffs and budget cuts “may hit later in the year.”
Recent Labor Department data offers a complex picture: job openings rose to 7.4 million in April, but layoffs also ticked up, and fewer Americans are voluntarily quitting — typically a sign of diminished confidence in the job market.
Meanwhile, jobless claims hit an eight-month high last week. While still historically low, the rise signals softening.
Sector Pressures and Shrinking Momentum
May’s employment data revealed broad slowdowns. The Institute for Supply Management reported that both manufacturing and services sectors contracted last month — a rare simultaneous downturn. Employers in transportation and warehousing could be particularly vulnerable, especially as trade volume adjusts under tariff pressure.
Indeed, early 2025 GDP data already reveals cracks. The economy shrank at an annual rate of 0.2% in Q1. A surge in imports ahead of Trump’s tariff hikes shaved five full percentage points from growth — a sign of market unease. Once those levies took effect in April, imports fell a record 16%.
That plunge in imports may ultimately translate into job losses across logistics, distribution, and shipping industries. “A sharp drop in foreign goods could hit jobs in warehouses and trucking,” wrote economist Michael Madowitz of the Roosevelt Institute.
Hiring Slowing, But Not Stalling
So far in 2025, employers have added an average of 144,000 jobs per month. That’s down from 168,000 in 2024, 216,000 in 2023, and a post-pandemic boom of 380,000 in 2022. The rebound year of 2021 saw a record 603,000 monthly job gains as the country emerged from COVID-era losses.
Though this deceleration is significant, it doesn’t yet spell recession — especially if consumer spending holds and employers remain cautious but committed to staffing.
One reason for ongoing hiring may be the painful memory of mass layoffs in 2020. Many companies found it difficult to rehire once demand returned and may now be hesitant to let workers go prematurely.
Still, the trajectory is clear: the U.S. job market is losing steam, and Trump’s economic experiments may be contributing to that drag.
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