**US Job Growth Slows in May Amid Trade War Uncertainty**

In May, the US economy experienced a notable slowdown in job creation, adding only 139,000 positions, a significant decline from previous months. This slowdown occurs as American businesses navigate the ongoing uncertainty surrounding President Donald Trump's trade war. Despite a previously strong labor market in April, which showcased resilience against the unstable trade policies from the White House, the recent report by the Bureau of Labor Statistics indicates a drop in new job additions.

The unemployment rate held steady at 4.2%, unchanged from the previous month. However, the report highlighted a decrease in federal employment, with 22,000 federal jobs lost in May due to the Trump administration's efforts to enhance government efficiency through the so-called "Department of Government Efficiency" (Doge). Since January, a total of 59,000 federal positions have been eliminated.

Furthermore, the Bureau of Labor Statistics revised down the job creation figures for March and April, revealing that 95,000 fewer jobs were added over these two months than initially reported. In response to the latest figures, President Trump reiterated his calls for Federal Reserve Chair Jerome Powell to reduce interest rates, advocating for a full-point cut to act as "Rocket Fuel" for the economy.

Economic experts had anticipated a decline after earlier data pointed to a cooling job market. Payroll firm ADP reported a mere 37,000 increase in private-sector payrolls in May, the smallest gain in over two years. Nela Richardson, ADP's chief economist, noted that hiring momentum is waning after a robust start to the year.

The Institute for Supply Management's purchasing managers' index also indicated a contraction in the manufacturing sector, with a reading of 49.9 in April, marking the lowest level since June 2024. Meanwhile, the University of Michigan's consumer sentiment survey showed stable sentiment from April to May, despite April marking the largest drop in consumer confidence since 1990.

Inflation measurements have yet to reflect the full impact of Trump's trade policies. In April, the annual inflation rate was 2.3%, slightly down from March. Economists suggest that the effects of tariffs will unfold gradually and are unlikely to significantly influence inflation data until the summer.