MNI BRIEF: US Sees Solid Job Gains In May, U-Rate Steady 4.2%

U.S. hiring stayed solid in May with employers adding 139,000 jobs, just above the market consensus of 125,000, and the unemployment rate held at 4.2% (4.244% vs 4.187% in April), the Bureau of Labor Statistics said Friday. 

The three-month average rate of payrolls growth was 135,000, after March and April were revised down by 95,000 jobs. The participation rate fell 0.2pp to 62.4%. The steady labor market data amid tariff policy whiplash should support the Federal Reserve's wait-and-see stance on monetary policy. (See: MNI INTERVIEW: Fed Will Face ‘Tough Calls’ In H2-Holtz-Eakin)

May hiring was led by health care (62,000), leisure and hospitality (48,000) and social assistance (16,000), BLS said. The federal government continued to lose jobs at a 22,000 rate last month with a cumulative decline of 59,000 since January. 

Average hourly earnings rose 0.4%, a tenth more than expected, and is up 3.9% over the past year, and average hours worked were flat at 34.3.