*The jobs report for May is out and it looks as if the pace of employment is losing steam. According to the Labor Department, there were 75,000 new jobs during the month. This is far short of expectations.
The expectation from analysts had call for a projection of around 180,000 new jobs for the month.
The department’s report said employment continued to trend up in professional and business services and healthcare. It also made note of the fact that unemployment remains at a historically-low 3.6 percent, or just under 6 million Americans are unemployed.
Job growth continued in the professional services and health care sectors but was largely flat in the construction, manufacturing, retail and hospitality industries, among others. Manufacturers, for example, added 3,000 jobs, while retailers lost 7,600 positions.
Average hourly earnings in May rose 6 cents to $27.83, a 3.1 percent increase year-over-year.
Friday’s report comes after disappointing growth in private sector jobs in May. It also comes amid uncertainty for employers over the future of the U.S.’s trading relationship with Mexico and China.
President Trump is poised to impose a 5 percent tariff on Mexico on Monday, duties that would rise in October to 25 percent if the country does not meet the White House’s demands to do more to curb illegal border crossings.
Despite the ongoing disputes, some experts say an economic slowdown is still unlikely.
“We still think a recession is not in the cards over the coming twelve months and investors should ensure their portfolios are in-line with desired long-term strategic allocations,” said Sameer Samana, senior global market strategist at Wells Fargo.
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