May Jobs Report Shows Continued Moderate Growth, Unemployment Steady at 4.2%

The U.S. labor market maintained its steady pace in May, with employment growth slowing modestly but the unemployment rate holding firm at 4.2%, in line with expectations.

Data released Friday by the Bureau of Labor Statistics revealed that nonfarm payrolls rose by 139,000 last month, beating economist forecasts of 130,000. The previous month’s job growth was revised downward to 147,000 from 177,000.

The unemployment rate remained unchanged at 4.2%, matching both April’s figure and consensus estimates.

Following the release, Bitcoin (BTC) gained slightly, pushing above the $104,000 level amid a market rebound after recent losses.

This month’s employment figures were especially significant against a backdrop of other softening economic signals, including the slowest ADP job additions in over two years, a dip in the ISM Services Index into contraction territory, and an uptick in initial unemployment claims to their highest since October.

The 10-year Treasury yield, which began the week near 4.5%, dipped to 4.32% ahead of the report but rose quickly to 4.44% afterwards. Market expectations for a Federal Reserve rate cut in July dropped sharply from 30% to 16%, while the chances of one or more cuts by September fell from 75% to 65%, per CME FedWatch.

Stock futures rallied in response, with the Nasdaq climbing 0.8% and the S&P 500 rising 0.75%.

Average hourly earnings increased 0.4% in May, exceeding the 0.3% forecast and outpacing April’s 0.2% rise. Year-over-year wage growth held steady at 3.9%, slightly above the predicted 3.7%.