US Nonfarm Payrolls Rise by 139,000 in May, Beating Expectations

US NFP Rises to 139,000 in May, Slightly Above Forecast

The US Nonfarm Payrolls (NFP) report released on Friday by the Bureau of Labor Statistics (BLS) showed that employment rose by 139,000 in May, slightly above market expectations of 130,000. April’s figures were revised downward from 177,000 to 147,000, while March’s numbers were revised from 185,000 to 120,000 — a cumulative downgrade of 95,000 jobs.

Labor Market Mixed Despite Positive Headline

• Unemployment Rate: Unchanged at 4.2%, in line with expectations
• Labor Force Participation Rate: Dropped to 62.4% from 62.6%
• Average Hourly Earnings (YoY): 3.9%, beating expectations of 3.7%
• Revised April NFP: Down to 147,000
• Revised March NFP: Down to 120,000

While the May print slightly exceeded forecasts, the weaker labor participation and downward revisions to prior months may limit the market’s enthusiasm.

Wage Growth Signals Resilience

Wages rose 3.9% year-over-year, indicating that labor cost pressures are persisting, which may complicate the Federal Reserve’s path toward rate cuts. The figure was above the 3.7% expected by economists and signals continued tightness in parts of the labor market.

What This Means for the Fed and Markets

The Federal Reserve is closely monitoring labor data for signs of economic slowdown. Although today’s NFP beat estimates, the downward revisions and stagnating participation rate raise questions about broader labor market strength.

📌 Next Fed meeting: July 30
If data continues to cool, rate cut expectations could resurface, especially amid fiscal uncertainty and global geopolitical risks.

Related Reading on Tredu.com:

• Fed Rate Cut Outlook: What the Labor Market Means for Policy
• DXY and the Dollar: What Strong NFP Means for Forex Traders
• How Wage Inflation Impacts Gold and Commodities