Wintry mix spreads across Minnesota

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

Hiring slowed sharply last month, as U.S. employers added just 75,000 jobs. The unemployment rate held steady at 3.6 percent. 

 suggests businesses are increasingly cautious in the face of the Trump administration's ongoing trade wars. 

The employment gains in May were well below economists' forecasts of 185,000 jobs and the three-month average of 151,000 jobs. Job gains for March and April were also revised downwards by a total of 75,000.  

The weak jobs number could increase the odds that the Federal Reserve cuts interest rates sooner rather than later. 

"This is not the Fed capitulating to financial markets or capitulating to a president," said chief economist Diane Swonk of Grant Thornton. "It is them reacting to an economy that is now weakening. Some of it's self-inflicted. But nonetheless, they have to deal with it."

Prospects for a rapid rate cut propelled another rally on Wall Street Friday. The Dow Jones Industrial Average and the S&P 500 index each rose more than 1 percent. 

Manufacturing continues to be a soft spot, with just 3,000 factory jobs added in May. An index of manufacturing activity released Monday fell to its 

https://twitter.com/NPR/status/1137016133578633217

Business and Economic News

Scott Horsley

Author

The number of jobs added was well below the three-month average. Manufacturing, a key sector that is affected by trade tensions, showed weak growth. But the unemployment rate held steady, at 3.6 percent.

Hiring slows amid trade tensions, with only 75,000 jobs added in May

Go Deeper.

Like this?

News you can use in your inbox