In May 2025, the U.S. added 139,000 jobs, slightly less than April's revised 147,000 but above the expected 130,000. Job growth was strong in health care (62,000 new jobs), especially in hospitals (30,000) and outpatient services (29,000). Leisure and hospitality added 48,000 jobs, mostly in restaurants and bars (30,000), while social assistance grew by 16,000 jobs.
However, the federal government lost 22,000 jobs in May and has cut 59,000 jobs since January. Manufacturing also saw a small decline, losing 8,000 jobs. Additionally, job numbers for March and April were revised down, showing 95,000 fewer jobs than previously reported.
Overall, the labor market is slowing but still strong. However, recent policy changes from the Trump administration could lead to fewer jobs in the coming months.
After the data rate futures traders see 2 Fed rate cuts this year, in September and December.
Implications of the Data
The initial market reaction was mixed but the Dow Jones did rally near 200 points as market participants digested the data.
Updates to follow
Moving forward the job market remains vulnerable to tariff developments. Key industries that usually show a strong U.S. economy, like tech, business services, transportation, construction, and finance, haven’t been adding many jobs in a significant way.
As uncertainty around trade deals rumbles on this could begin to have an adverse effect later in the year. Market participants are hoping for positive developments on the trade deal front which could help the labor market.
Technical Analysis - Dow Jones
From a technical standpoint, the Dow Jones is looking to snap a two-day losing streak.
At the time of writing the index is up around 1.1% and testing a key area of resistance around the 42800 handle.
A daily candle close above this handle at 42800 could lead to a quick move toward the 43402 handle.
Immediate support rests at 42292 with a candle close below this handle, opening up the possibility of further downside.
Dow Jones Daily Chart, June 6, 2025
Source: TradingView
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