USA employers add a weak 75,000 jobs; unemployment stays 3

May jobs report: Hiring slowed down in May, just 75,000 jobs added

US employers added a weak 75,000 jobs in May

"The job market remains tight, but this report, coupled with other recent data, shows a distinct cooling of the economy this spring". In fact, there are some signs the market is still improving.

"It definitely looks like we've downshifted in the pace of job growth", said Michael Feroli, chief USA economist for JPMorgan Chase.

On the trade front, Mexican ambassador to the US Martha Barcena Coqui told CNBC on Thursday that negotiations with the White House had involved a "very good discussion".

On Friday, the government also revised down the economy's hiring gains for March and April by a combined 75,000. So all around, this is a pretty weak employment report.

- The U-6, or underemployment rate, fell to 7.1% from 7.3%; the gauge includes part-time workers who'd prefer a full-time position and people who want a job but aren't actively looking. That would be down from a blockbuster reading of 263,000 jobs in April, but above the 3-month average of 169,000 jobs.

"The weaker-than-expected May employment report serves as a reminder that the sun doesn't shine on the economy forever", said Mark Hamrick, senior economic analyst at Bankrate. The Dow Jones Industrial Average was up 0.7%, or 183 points, while the S&P 500 similarly grew 0.7%, or 21 points, and the Nasdaq Composite advanced almost 1%, or 73 points. The stock market is clearly anticipating a rate cut sometime in the near future, and that's contributed to the big rally we've seen on Wall Street this week. Beijing responded by imposing tariffs on $60bn of USA goods. Last month, the administration increased tariffs on $200 billion worth of imports from China. Trump is set to meet with Chinese President Xi Jingping at the end of the month to finalize those negotiations. If we are unable to make the deal, Mexico will begin paying Tariffs at the 5% level on Monday!', tweeted Trump. That's the most in one month since March 2006 and more than three times more than in May 2018.

To negotiate an agreement on the matter, Mexico sent a delegation which has been meeting daily with a USA team led by Vice President Mike Pence since June 5.

"This is not the Fed capitulating to financial markets or capitulating to a president", said chief economist Diane Swonk of Grant Thornton.

The US' southern neighbour agreed to send its national guard to its border with Guatemala in order to stem the flow of undocumented migrants hoping to reach the US, according to Reuters. Officials at the talks have indicated that protocols around sending asylum seekers to Mexico or other third-party countries while their USA claims are processed are also part of the mix.

Talks to prevent the duties from kicking in at 5 per cent on June 10 continue.

People attend TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017.

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