FX.co ★ US Job Growth Seen Cooling in May

U.S. nonfarm payrolls are anticipated to have risen by 130,000 in May 2025, representing the smallest increase in three months and a deceleration from the 177,000 jobs added in April. This hiring slowdown is occurring amidst heightened uncertainty over tariff policies, potentially hindering job growth, though widespread layoffs are not anticipated at this stage. Within various sectors, employment in trade and transportation is expected to have plateaued following a previous surge in hiring in response to potential trade disruptions. The unemployment rate is predicted to remain steady at 4.2%, with annual wage growth likely to have slightly decreased to 3.7%. A slight downside in these figures is unlikely to alter the Federal Reserve's current policy stance, as policymakers continue to address ongoing trade-related uncertainties and pressure from President Trump for reduced interest rates.