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Jun 7, 2025  |  
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Ward Clark


NextImg:Good News Everyone! Jobs Surging, Unemployment Flat.

The jobs report is in for May, and it has undoubtedly put some people in the White House in a good mood this morning. The turnaround isn't complete yet, but the reversal of many growth-killing Biden administration policies is working; the gigantic super-tanker that is the United States economy is starting to turn around. The expected jobs number for May had been 125,000, and the report came in at 139,000. Not overwhelming, but better than expected.

And we're not yet five months into the second Trump administration.

  • Nonfarm payrolls rose 139,000 for the month, above the Dow Jones estimate for 125,000 and a bit below the downwardly revised 147,000 in April. The unemployment rate held at 4.2%.
  • Worker pay grew more than expected, with average hourly earnings up 0.4% during the month and 3.9% from a year ago.
  • Nearly half the job growth came from health care, which added 62,000. Leisure and hospitality contributed 48,000, while social assistance added 16,000.

The piece linked above also made this comment:

On the downside, government lost 22,000 jobs as efforts to cull the federal workforce by President Donald Trump and the Elon Musk-led Department of Government Efficiency began to show an impact.

It's hard to see a downside in the removal of 22,000 from the federal workforce; this is literally what the DOGE was brought in to do, and it's a safe bet your average American won't notice any difference in their dealings with the federal government. This is what we call "a good start." 

Treasury Secretary Scott Bessent took to X to laud the report:

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The X post continues:

We have a resilient economy driven by policies that prioritize American workers – and to supercharge investment and job creation in the U.S., we must get the One, Big Beautiful Bill across the finish line.

Secretary of Labor Lori Chavez-DeRemer took to Fox Business to count coup:

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The Secretary said:

139,000 new jobs added to this economy is great for the American people. President Trump, under his leadership, invested in this. We're seeing it month after month, we are exceeding expectations. 

While the administration - indeed, every administration - is wont to push unemployment numbers, it's also important to note the labor force participation rate, which is a slower-moving indicator; it generally doesn't bounce back as quickly as the unemployment numbers. The labor force participation rate includes people who have dropped out of the job market for good. During the COVID debacle, that number plunged, and for the last few months it has been flat, perhaps ticking upward. Slowly, but upward.

So what does all this mean for the Trump administration, and perhaps more pressing, what does it mean for the Big, Beautiful Bill?

See Also: Relax, People. Paul Krugman Is Predicting a Disastrous Recession.

Trump Speaks to Steelworkers at Celebration of Deal at US Steel Facility in Pittsburgh, PA

President Trump immediately took to his Truth Social platform to promote the success of his policies, both in employment and trade:

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Of course, the real question is how this might affect passage of the Big, Beautiful Bill - the BBB. And the answer is simple: "It can't possibly hurt." 

Good economic news usually helps the party in control, regardless of how much or how little the White House or Congress had to do with that news. Now, in this case, the economic turnaround can pretty plainly be seen to have begun on January 20th, and what else happened on that day? The changes not only in foreign trade but also in energy policy, and the push to reduce the portion of GDP that gets swallowed up by the federal government, are starting to have an effect. So, on the margin, this could change a vote or two on the BBB - and may push the Senate, which is considering that bill now, to feel a little more sanguine about getting this thing done.

Predictions are hard to make, especially about the future. But there's some good news in this jobs and unemployment report, and good news is always welcome.

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