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U.S. Job Growth Slows to 37,000; Trump Urges Rate Cuts

6/4/2025

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Summary

Story summary

In May, the U.S. private sector saw a disheartening addition of just 37,000 jobs—the weakest growth since March 2023. This alarming trend has led President Trump to urge Fed Chair Jerome Powell to cut interest rates. Economists are bracing for the upcoming nonfarm payrolls report, anticipating further signs of a sluggish labor market.

History

Historical Context

In May 2023, the U.S. private sector added only 37,000 jobs, the weakest growth since March. This mirrors the early 1990s recession, where job growth stagnated despite economic recovery, leading to a "jobless recovery." Economists and policymakers are concerned about similar patterns of slow job creation and rising unemployment, reminiscent of past economic downturns that prompted calls for monetary easing.

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Story summary

In May, the U.S. private sector saw a disheartening addition of just 37,000 jobs—the weakest growth since March 2023. This alarming trend has led President Trump to urge Fed Chair Jerome Powell to cut interest rates. Economists are bracing for the upcoming nonfarm payrolls report, anticipating further signs of a sluggish labor market.

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