US nonfarm payrolls increased by 139,000 in May 2025, marking a modest slowdown from April’s downwardly revised gain of 147,000, but still slightly above market expectations of 130,000.
US non farm payrolls slightly beat forecasts
The data highlights continued resilience in the labor market despite signs of deceleration and growing macroeconomic uncertainty. Job gains remained concentrated in key service sectors, with health care adding 62,000 positions—led by hospitals (30,000) and ambulatory health care services (29,000). Leisure and hospitality also posted solid growth, contributing 48,000 jobs, primarily driven by food services and drinking places (30,000). Social assistance employment rose by 16,000, reflecting steady demand for care-related occupations.
However, the employment picture was less favorable in certain sectors. The federal government shed another 22,000 jobs in May, bringing total losses in the public sector to 59,000 since the start of the year—likely reflecting a combination of budget tightening and policy-driven workforce reductions. Manufacturing employment also slipped by 8,000, as businesses faced pressure from higher input costs and weakening demand amid trade-related uncertainty.
Previous months data revised
Adding to the mixed tone of the report, payrolls figures for both March and April were revised downward, subtracting a combined 95,000 jobs from previously reported totals. These revisions suggest the labor market may have been slightly weaker than initially thought, reinforcing concerns that job growth is gradually cooling.
Nevertheless, the May report remains broadly consistent with a labor market that is slowing but not yet stalling. The underlying strength in service-oriented industries continues to provide a buffer against declines elsewhere. Still, recent policy shifts—including sweeping tariffs, tighter immigration enforcement, and the potential for further fiscal tightening under the Trump administration—pose emerging risks that could weigh on hiring trends in the second half of the year.
