Jobs Report Eases Fears—Though Cracks Are Beginning to Show

Markets responded positively to May’s jobs report, which showed 140,000 new jobs and a steady 4.2% unemployment rate. But beneath the headline numbers, warning signs are starting to emerge.In this week’s Market Update:The labor force shrank by 625,000—raising concerns about discouraged workersJob gains were heavily concentrated in education and healthcareRetail and manufacturing sectors shed jobsPrior months were revised down by 95,000 jobs, hinting at a weaker trendWhile job creation remains above key benchmarks, the uneven growth and softening labor participation suggest the economy may be entering a more fragile phase. Watch the full update for key takeaways and what to monitor in the months ahead.