The U.S. economy added more jobs than many analysts had reportedly expected, but the job growth overall is still slowing down.
Employment data released Friday by the Bureau of Labor Statistics showed the US. had added 139,000 jobs, a number that exceeded forecasts for about 120,000 payroll gains. Still, that number is down from the revised 147,000 jobs added in April. The unemployment rate held steady at 4.2%, remaining near historic lows.
NBC News reported that, heading into Friday’s report, other recent data had begun pointing to signs of a softening economy.
On Wednesday, private payroll processor ADP reported the weakest monthly jobs total since March 2023. While economists say ADP’s data often align with the official BLS data, the trend is clear, with ADP reporting fewer jobs added in five of the past seven months, according to the NBC report.
On Thursday, the Department of Labor reported weekly jobless claims came in higher than expected, reaching their highest level since October — while continuing unemployment claims remained elevated, an indication that it is taking longer for out-of-work people to find a job.
“We’re throttling back — and the damage from the trade war is still coming,” Mark Zandi, chief economist at Moody’s Analytics, told NBC News ahead of Friday’s BLS report.
Zandi said forthcoming inflation readings are likely to reflect firms raising prices due to Trump’s import taxes. Indeed, a Federal Reserve survey released Wednesday indicated “widespread reports” of companies “expecting costs and prices to rise at a faster rate going forward,” with higher tariffs “putting upward pressure on costs and prices.”
As prices begin to rise, NBC reported, consumer dollars won’t go as far, Zandi said. That will likely lead to a feedback loop of reduced economic activity and reduced hiring.
“The job market already feels fragile,” he added.
As demand softens “more palpably,” Zandi said, “we’ll start to see layoffs” — with BLS jobs data likely falling consistently below 100,000 in the coming months.
