May jobs report showed stable gains from previous month, unemployment unchanged

Total nonfarm payroll employment increased by 139,000 in May, and the unemployment rate was unchanged at 4.2 percent, the U.S. Bureau of Labor Statistics reported Friday. Employment gains continued in health care, leisure and hospitality, and social assistance. Federal government employment continued to experience losses.

America's Credit Unions Senior Economist Dawit Kebede made the following statement describing the findings of May’s Jobs report:

“The May jobs report indicates a steady labor market, with unemployment rate remaining stable at 4.2%. The economy added 139,000 jobs—slower than the previous month but above expectations. Job gains in May also exceed the monthly average of 124,000 since January.

A labor market near maximum employment rate implies the Federal Reserve is less likely to cut rates soon, especially while inflation remains above target and faces upward pressure due to tariffs. Markets now assign a lower probability to a rate cut before September.

For credit unions, a low unemployment rate implies members are more likely to afford new loans and stay current on the existing one, supporting overall asset quality.”