Healthcare tops US job gains; Mortgage rates edge lower

Healthcare and hospitality were among top gainers as the U.S. added a better-than-expected 139,000 public and private jobs in May, the Labor Department reported. The unemployment rate was unchanged from April’s 4.2%, though the overall pace of new hiring continued to slow from year-earlier levels.

The government said healthcare jobs increased 62,000 from the prior month, as leisure and hospitality added 48,000 ahead of prime tourism season for many regions. Jobs in social assistance rose 16,000, while federal government positions dropped by 22,000 amid ongoing agency cuts.

Analysts at Oxford Economics noted the labor market and larger economy are so far only feeling a partial drag from announced and implemented trade tariffs that have spurred pessimism among consumers and corporate leaders about business prospects.

“Nonfarm employment has risen by an average of 135,000 over the past three months, which is strong considering that it’s above its breakeven level, or the number of jobs needed to keep the unemployment rate stable over time,” Oxford Economics Chief U.S. Economist Ryan Sweet said in a statement. But he added labor supply growth has weakened in part due to immigration crackdowns.

The forecasting firm is standing by its prior prediction that the Federal Reserve will wait until December before cutting interest rates as it gauges inflation and other potential effects of tariffs. The government’s next consumer inflation report, with May data, is slated for June 11, and the Fed’s next rate-setting meeting is scheduled for June 17-18.

Home mortgage rates continued to post slow declines from year-earlier levels, as a prominent real estate trade group projected steady gains in existing home sales for the rest of 2025 and into 2026.

Freddie Mac’s latest national lender survey found 30-year, fixed-rate mortgages averaging 6.85% for the week ended June 5, down from the prior week’s 6.89% and the year-earlier average of 6.99%. National Association of Realtors Chief Economist Lawrence Yun said the slight downward trend among other factors should help existing home sales post an annual increase of 6% for 2025 and an 11% rise in 2026.

Yun told the audience at a recent legislation-focused NAR gathering in Washington that the housing market “remains very difficult at the moment.” He said a recovery in home sales has been delayed in part by changes in the Federal Reserve’s economic outlook, which have put interest rate cuts “on pause for a longer period” than industry leaders previously expected.

“Mortgage rates are the magic bullet, and we’re waiting and waiting until those come down,” Yun told the gathering, according to an NAR statement.