US job growth slows in May, unemployment rate steady at 4.2%
The US unemployment rate remained at 4.2% for the third straight month. (Freepik pic)
WASHINGTON : US job growth slowed in May amid headwinds from tariff uncertainty, while the unemployment rate held steady at 4.2%, potentially giving the Federal Reserve (Fed) cover to delay resuming interest rate cuts for a while.
Nonfarm payrolls increased by 139,000 jobs last month after rising by a downwardly revised 147,000 in April, the labor department's bureau of labor statistics said in its closely watched employment report today.
Economists polled by Reuters had forecast 130,000 jobs added after a previously reported 177,000 rise in April.
Estimates ranged from 75,000 to 190,000 jobs. The unemployment rate remained at 4.2% for the third straight month.
The economy needs to create roughly 100,000 jobs per month to keep up with growth in the working-age population.
That number could decline as President Donald Trump has revoked the temporary legal status of hundreds of thousands of migrants amid an immigration crackdown.
Much of the job growth this year reflects worker hoarding by businesses amid Trump's flip-flopping on tariffs, which economists say has hampered companies' ability to plan ahead.
Opposition to Trump's tax-cut and spending bill from hardline conservative Republicans in the US Senate and billionaire Elon Musk adds another layer of uncertainty for businesses.
Employers' reluctance to lay off workers potentially keeps the US central bank on the sidelines until the end of the year.
Financial markets expect the Fed will leave its benchmark overnight interest rate unchanged in the 4.25%-4.50% range this month, before resuming policy easing in September.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
7 hours ago
- Free Malaysia Today
Anwar urges restraint after US attack on Iran's nuclear sites
Prime Minister Anwar Ibrahim said the US's involvement in the Iran-Israel conflict is only worsening the situation. PETALING JAYA : Prime Minister Anwar Ibrahim has raised concerns over the escalating conflict between Iran and Israel after US forces struck three of the republic's nuclear sites. Anwar stressed that for genuine resolution, pressure must be placed on Israel to stop its provocative and violent actions against other nations. 'When they launch attacks and kill the people of Iran, there will inevitably be retaliation. Our position is one of fairness. 'In Gaza, the killings continue and it includes women and children. Now Israel is attacking Iran, which has decided to fight back. The involvement of outside powers, including the US, is only worsening the situation,' he told reporters after an event in Kuching today. Anwar, who also serves as finance minister, warned that a closure of the Strait of Hormuz would have dire consequences on the global economy. 'To me, what matters most are human lives and justice. 'The question is, if Iran is not allowed to respond, why allow Israel to (continue) acting in such a manner?' he said. Earlier today, AFP reported US president Donald Trump as saying that 'Tehran's nuclear programme had been obliterated' after US forces struck three Iranian nuclear sites – Natanz, Isfahan and Fordow – in a 'very successful attack'. After days of deliberation and long before his self-imposed two-week deadline, Trump's decision to join Israel's military campaign against Iran represents a major escalation of the conflict. In a speech that lasted just over three minutes, Trump said Iran's future held 'either peace or tragedy', and that there were many other targets that could be hit by the US military. Yemen's Houthis had said they will target US vessels and battleships in the Red Sea if the Trump administration gets involved and continued to support the Israeli attack on Iran, according to a statement published on a Houthi spokesman's official Telegram account. Shell Plc CEO Wael Sawan and Petronas group CEO Tengku Muhammad Taufik Aziz have in the past week warned of rude shocks to global trade and oil prices following the escalating conflict around the Strait of Hormuz, a major transit route. In a separate statement, opposition leader Hamzah Zainudin said Perikatan Nasional strongly condemned the acts of aggression carried out by both Israel and the US against Iran. The Malaysian government, he said, must take a firmer and more resolute stance by calling for an emergency meeting of the United Nations Security Council to halt the actions of Israel and the US. 'Malaysia must also urgently engage with like-minded nations in a concerted and principled effort to address this crisis in a just, fair, and rules-based manner.'
Malay Mail
8 hours ago
- Malay Mail
Volkswagen challenges Waymo with launch of electric ID. Buzz autonomous robotaxi fleet in Los Angeles
LOS ANGELES, June 22 — Volkswagen, through its subsidiary MOIA, is preparing to roll out its first ID. Buzz AD autonomous vehicles in Los Angeles in 2026, in collaboration with Uber. This initiative is part of a strategic partnership with the goal of deploying several thousand electric robotaxis in the United States over the next 10 years. MOIA is a subsidiary of the Volkswagen Group that focuses on developing shared transportation services, particularly on-demand shuttles. It has announced the upcoming launch of a robotaxi service consisting of a fleet of ID. Buzz AD vehicles. The ID. Buzz AD is an electric van equipped with Mobileye technology, which includes cameras, radars and LiDAR sensors. The vehicle thus has precise 360-degree vision for up to 400 meters. Volkswagen promises level 4 autonomous driving capabilities, meaning that no human intervention is required. The first vehicles are set to enter the testing phase in Los Angeles at the end of 2025, with at least one safety operator on board. A commercial launch is planned for 2026. A roll-out in Europe is also planned, probably in Germany to start with. With the goal of deploying thousands of robotaxis in major US cities, Volkswagen is stepping on Waymo's toes, taking advantage of legislation favourable to the commercial operation of fully autonomous fleets. Waymo currently operates around 1,500 autonomous taxis in the United States, spread across San Francisco, Los Angeles, Phoenix and Austin. The company plans to add 2,000 more by the end of 2026, notably by expanding its service to cities such as Atlanta, Miami and New York. — ETX Studio
Malay Mail
8 hours ago
- Malay Mail
What now for Iran after US strikes? — Ng Chien Chern
JUNE 22 — Today marks the United States' entry into war against Iran after two weeks of fighting between Israel and the latter. Donald Trump has floated the idea of using the United States' proprietary bunker-busting bomb to destroy Iran's underground uranium-enrichment facilities at Fordow. Saturday's strike dispelled any remaining doubts about whether Trump, who had always portrayed himself as an anti-war president, would employ such a drastic move and risk dragging the US into another 'forever war'. With its back against the wall, Iran now faces only a handful of options in response to the latest development. For some time, Iran has warned against US involvement in its conflict with Israel or risked a regional conflagration. However, it has few cards to play following the assassination of many top brass military personnel on June 13 and the debilitating attack on its missile infrastructure by Israel. While Iran is believed to have massive stockpiles of ballistic missiles, a protracted war of attrition is unlikely to end in the regime's favour — especially when its proxies such as Hezbollah in Lebanon, the Houthis in Yemen, and Hamas in Gaza have been severely weakened, rendering it alone in the region. Nevertheless, Iran still wields some leverage against the United States; in particular, it sits in a strategic location to enact a blockade on the Strait of Hormuz, which would result in soaring oil prices. Roughly 20 per cent of the world's petroleum passes through this narrow strait. Countries like China, India and Japan, which are reliant on the oil flowing out of the Persian Gulf, are particularly sensitive to such a price shock. Similarly, the US is not immune to the spike in oil prices, as it can stoke domestic inflation. A protester with a US dollar note taped over her mouth participates in a demonstration in support of Iran and Palestinians in Gaza, and against the actions of Israel and the United States in Sydney on June 22, 2025. — AFP pic On the other hand, sealing off the strait would almost certainly alienate Iran from whatever diplomatic goodwill remains. This would bolster not only the United States' but Israel's justification that Iran indeed poses a threat to the region and should be pressured into full surrender. However, when push comes to shove, Iran may still do the unthinkable to put the United States under international pressure to scale back its attack. Iran may also opt for a more calibrated retaliation against the United States by attacking its military installations in the region. A limited attack may demonstrate to international audiences that Iran does not yield to foreign aggression, which in turn signals to Israel that it retains sufficient capability and capacity to continue the fight. But every act of retaliation risks provoking further escalation with severe casualties, as Trump warned, 'any retaliation will be met with force far greater than what was witnessed tonight'. That brings us to Iran's final, starkest option: capitulation and de-escalation to preserve the survival of its current regime. Faced with the very real prospect of regime collapse, the Ayatollah regime could forswear its nuclear enrichment programme in exchange for a ceasefire. While this would leave hardliners furious and undermine Iran's narrative of resistance, it might be the only way to preserve the Islamic Republic. If the bunker-busting bomb dropped by the US has indeed obliterated the facilities and set back the development of its nuclear weapons for years, further defiance would serve no purpose in the interest of regime survival. Iran is at a crossroads now. Its Supreme Leader, Ayatollah Ali Khamenei, is allegedly sheltering in a bunker and has picked his successor in the event of his assassination. Its proxies are weakened. Although the current Israeli attack has also riled up deep-seated patriotism among Iranians, the regime remains deeply unpopular at home. Tehran may yet attempt a Hail Mary to slay the Goliath that is the US — but the odds are stacked against it. Its next move will no doubt shape the future of Iran. * This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
