The May jobs report will be released Friday. Here’s what to expect Economists anticipate a significant slowdown in U.S. job creation for May, with expectations of only 80,000 new jobs added, a notable decrease from previous months. This projection is influenced by a “low-hire, low-fire” sentiment and an increase in planned layoffs, including a substantial rise in AI-related job cuts. The anticipated labor market stagnation is likely to keep the Federal Reserve on hold regarding interest rate changes.

• Economists surveyed by Dow Jones expect only 80,000 jobs to be added in May, down from an average of 150,000 in the prior two months.
• A “job-hugging” trend means people are staying in their current jobs, making it difficult for job seekers.
• Planned layoffs increased by 16% in May, reaching the highest total for the month since 2020.
• AI-related job cuts reached their highest single-month total since Challenger, Gray & Christmas began tracking the data.
• Initial jobless claims saw their biggest total since early February.
• Goldman Sachs forecasts 60,000 job gains, while Vanguard expects only 20,000, citing seasonal factors and a market unwind.
• The Federal Reserve is expected to keep interest rates on hold, with markets pricing in no chance of a move at the June FOMC meeting.
• A stable labor market coupled with persistent inflation could lead to a more hawkish stance from the Fed, keeping rate hikes on the table.