US May job growth slows to 80,000, signaling labor‑market cooling

Economists forecast that U.S. non‑farm employment will increase by only 80,000 jobs in May, down sharply from the 115,000 added in April. The unemployment rate is expected to hold steady at 4.3%, while average hourly wages are projected to rise 0.3% month‑over‑month and 3.4% year‑over‑year. The slowdown is attributed to the fading of temporary boosts such as favorable weather and unusually strong logistics hiring that had supported earlier gains. About half of the 300,000 jobs created in March and April were concentrated in the health‑care sector.

Federal Reserve Chairman Kevin Warsh, who recently took over the chairmanship, faces a policy dilemma as the Fed’s benchmark rate remains in the 3.5%‑3.75% range. Markets remain skeptical about any imminent rate cuts, with some participants even speculating about possible hikes amid persistent inflation.

European markets are expected to open with modest gains, though technology and chip‑related stocks could see profit‑taking. The outlook is clouded by ongoing tensions in the Middle East, including renewed clashes between Hezbollah and Israeli forces in Lebanon and the absence of a peace accord between the United States and Iran.