U.S. employers added just 75,000 jobs in May, a sharp decline from the month prior and a far cry from what economists were expecting.
The U.S. unemployment rate remained at 3.6 percent — or 5.9 million people — in May, the Bureau of Labor Statistics announced Friday in its monthly jobs report.
May’s dismal jobs growth is far below the average 164,000 in 2019, suggesting that economic growth is slowing in the U.S. The average monthly gain for 2018 was 223,000 jobs.
"This relatively weak number may reflect some risk aversion on the part of employers in the face of increased uncertainty in the economy, stemming from trade tensions and global economic weakening," Doug Duncan, chief economist at Fannie Mae, said in a statement to Cheddar.
The industries with the largest gains were professional and business services and health care, which added over 33,000 and 16,000 jobs in May respectively. The construction sector added roughly 4,000 jobs.
In May, average hourly earnings also increased 0.2 percent, or 6 cents.
The jobs report come amid enduring economic tension between two of the U.S.’ most significant trading partners: China and Mexico.
After several days of negotiations in Washington this week, U.S. and Mexican officials failed to reach an agreement and avoid President Trump’s punitive 5 percent tariff hike set to go into effect on June 10.
“There are some questions on how the proposed tariffs are going to impact businesses in the United States,” Beth Akers, a senior fellow at the economic think tank the Manhattan Institute, told Cheddar. “Businesses are responding with hesitance to expand their labor pools.”
The White House first threatened tariffs on Mexican imports in May in an effort to force Mexico to curb migration at the U.S. southern border. The move set markets tumbling and was immediately met with backlash from businesses and politicians from both sides of the aisle.
“The President has said what he means and he meant what he said. We made that very clear to the Mexican delegation yesterday — that for anything to change, either before or after Monday, Mexico has to step up,” Vice President Mike Pence told reporters on Thursday. "Mexico has to take decisive action to end this surge of illegal immigration that is literally overwhelming our southern border.
White House Press Secretary Sarah Sanders reiterated the administration's stance on Friday, saying “our position hasn’t changed. Tariffs are going to take effect on Monday,” according to public pool reports.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
At the core of the ongoing government shutdown is a fight over the decision to end subsidies that let some 12 million Americans get health coverage.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
