May Jobs Report: Slowing Gains and Rising Trade Uncertainty
By Bernard E. Anderson, Ph.D.
Whitney M. Young, Jr. Professor Emeritus, The Wharton School, University of Pennsylvania
Senior Economic Advisor, National Urban League
The May jobs report shows that while the labor market continues to expand, its pace is slowing under the weight of growing economic uncertainty. Employers added 132,000 jobs in May—less than in previous months—but enough to signal continued economic activity. The unemployment rate remained unchanged at 4.2 percent, and while average hourly wages rose by 15 cents—an 8.4 percent increase over the past year—the overall employment picture is showing signs of softening.
The labor force participation rate ticked down to 62.4 percent, and the employment-to-population ratio fell to 59.7 percent. These declines suggest that fewer people are working relative to the size of the population, and that some individuals may be stepping away from the labor force altogether.