May Jobs Growth Moderates, Unemployment Holds at 4.2%
The U.S. labor market showed signs of slowing in May but remained resilient, with the unemployment rate steady at 4.2%, matching forecasts.
Nonfarm payrolls increased by 139,000 last month, slightly above the 130,000 economists had predicted, according to the Bureau of Labor Statistics report released Friday. April’s job additions were revised down to 147,000 from an initial 177,000.
Despite softer job growth, the unemployment rate held firm at 4.2%—the same as in April and in line with expectations.
Following the data release, bitcoin (BTC) edged up modestly, surpassing the $104,000 mark amid a broader market rebound.
The report comes amid a week of signs pointing to economic softness, including the slowest ADP job growth in over two years, a dip in the ISM Services Index into contraction territory, and a rise in initial jobless claims to their highest level since October.
The 10-year U.S. Treasury yield, which started the week near 4.50%, dropped to 4.32% before climbing back to 4.44% after the jobs data. Meanwhile, the likelihood of a Federal Reserve rate cut in July decreased sharply to 16% from 30%, with the odds of one or more cuts by September falling to 65% from 75%, according to CME FedWatch.
U.S. stock futures rose in response, with the Nasdaq up 0.8% and the S&P 500 gaining 0.75%.
Average hourly earnings grew 0.4% in May, beating expectations of 0.3% and surpassing April’s 0.2%. Year-over-year wage growth stayed steady at 3.9%, above the forecast of 3.7%.
