**Job Growth Remains Steady in May Despite Economic Uncertainties**

The Bureau of Labor Statistics released a report on Friday indicating a slight decrease in hiring during May, as consumers and companies continued to navigate tariffs and a potentially slowing economy. Nonfarm payrolls climbed by 139,000 for the month, surpassing the Dow Jones estimate of 125,000. This number, although lower than April's revised addition of 147,000 jobs, demonstrates a resilient labor market amidst economic concerns.

The unemployment rate remained at 4.2%, showcasing stability. Meanwhile, worker compensation saw an unexpected rise, with average hourly earnings increasing by 0.4% in May and marking a 3.9% rise from the previous year, higher than the projected 0.3% and 3.7%, respectively.

Health care was a major contributor to job growth, adding 62,000 jobs, significantly above its average monthly gain of 44,000 over the past year. The leisure and hospitality sector also registered a notable increase of 48,000, while the social assistance sector added 16,000 positions. Conversely, the government sector lost 22,000 jobs due to efforts led by President Donald Trump and the Elon Musk-led Department of Government Efficiency to reduce the federal workforce.

Despite the promising figures for May, there were some concerns raised by revisions to previous months’ data. April’s jobs count was adjusted downward by 30,000, and March’s total was revised down by 65,000 to 120,000. Additionally, the household survey, a different measure used for the unemployment rate, showed a significant decrease of 696,000 workers, highlighting some volatility compared to the establishment survey numbers.

The report was released amidst apprehensions over President Trump's tariff policies and their impact on the global trading environment. While the economy still appears to be a good distance from recession, the uncertainty surrounding tariffs has caused anxiety among both consumers and business leaders, worried about potential inflation and slowed business activity.

Federal Reserve officials are closely watching these developments with caution. With the next policy meeting less than two weeks away, markets widely expect the central bank to keep interest rates steady, even as policymakers express growing concern over the prospect of tariff-induced inflation.

Both stock market futures and Treasury yields saw an increase following the release of the employment data, reflecting a mixed yet mostly positive reaction to the current economic indicators.