The U.S. labour market showed resilience in May, adding 139,000 jobs, above expectations of 126,000 despite headwinds from President Trump's new tariff policy. The unemployment rate remained steady at 4.2%, but prior months saw significant downward revisions, with March and April figures reduced by a combined 95,000 jobs, indicating a softening trend. Wages rose 0.4% month-over-month and 3.9% year-over-year, outpacing forecasts, while labour force participation fell to 62.4%. Markets reacted positively, with major indices rising around 1%. Despite mixed signals, economists expect the Fed to hold rates steady until December, awaiting further clarity on inflation impacts from tariffs.