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U.S. job growth unexpectedly surged in May, as the labor market remained surprisingly resilient even in the face of rising interest rates, declining economic growth and chronic inflation.
Employers added 339,000 jobs in May, the Labor Department said in its monthly payroll report released Friday, easily beating the 190,000 jobs forecast by Refinitiv economists. That also marks an increase from April, when payrolls increased by an upwardly revised 294,000.
At the same time, a separate report based on a smaller survey of households offered a slightly different picture of the labor market. The report indicated the unemployment rate climbed to 3.7% from 3.4%, even though the labor force participation rate remained unchanged last month. It was the highest jobless rate since October 2022 and the biggest increase since the early days of the COVID-19 pandemic.
Wage growth also cooled last month, with average hourly earnings – a key measure of inflation – rising 0.3%, in line with estimates. On an annual basis, wages rose 4.3% in May.
MAJORITY OF WORKERS REGRET QUITTING DURING ‘GREAT RESIGNATION'
The Federal Reserve indicated it is closely watching the report for evidence the labor market is finally softening after more than a year of interest rate hikes.
Over the past week, some central bank officials have signaled they may skip another rate hike at their meeting that begins June 13 as they examine how tighter monetary policy is affecting the economy. However, some officials have hinted they are open to raising rates for the 11th straight time.
THE HOUSING RECESSION ISN'T OVER YET
The surprisingly strong job gains in May, when coupled with the spike in unemployment and the slowdown in wage increases, may provide fodder for both sides of the debate.
"The tug of war taking place in the economy is on full display in today’s mixed job report and keeps pressure on the Fed to remain hawkish, even if it gives them a reason to pause later this month," said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.
Construction workers on a job site on May 5, 2023, in Miami. (Photo by Joe Raedle/Getty Images / Getty Images)
Job gains were broad-based last month, with the biggest gains in professional and business services (64,000), government (56,000), health care (52,000), leisure and hospitality (48,000) and construction (25,000).
Still, the outlook for the labor market remains hazy.
A spate of bank collapses this spring is threatening to further restrict economic growth and hiring by tightening lending standards and making it more difficult to acquire a loan. Borrowers may have to agree to more stringent terms like high interest rates as banks try to reduce the financial risk on their end. Fewer loans, in turn, would lead to less big-ticket spending by consumers and businesses.
SILVER LINING OF HIGHER INTEREST RATES: SAVINGS ACCOUNT RATES
Fed Chair Jerome Powell said last month that tighter credit conditions are likely to weigh on economic activity, including hiring and inflation.
Now Hiring signs are displayed in front of restaurants in Rehoboth Beach, Delaware, on March 19, 2022. (Photo by STEFANI REYNOLDS/AFP via Getty Images / Getty Images)
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There has also been a wave of notable layoffs over the past few months, and the list continues to grow. Amazon, Apple, Meta, Lyft, Facebook, Google, IBM, Morgan Stanley and Twitter are among the companies letting workers go.
For many economists, the possibility of unemployment rising has become a question of when, not if.
The central bank previously projected in March that the jobless rate will climb substantially higher to 4.6% and remain elevated in 2024 and 2025 as steeper rates continue to take their toll by pushing up borrowing costs. That could amount to more than 1 million job losses.
Hiking interest rates tend to create higher rates on consumer and business loans, which slow the economy by forcing employers to cut back on spending.
ESPN baseball reporter. Covered the L.A. Rams for ESPN from 2016 to 2018 and the L.A. Angels for MLB.com from 2012 to 2016.
LOS ANGELES — It was the middle of June, the San Diego Padres were in town for what promised to be a heated series against the Los Angeles Dodgers, and Joe Musgrove, their injured ace, had one thing on his mind:
Major league players often send each other jerseys for personalization, to commemorate friendship or admiration or even milestones. But Musgrove had done that only a handful of times in his nine years as a major leaguer — all for former teammates he was once close with, never for a prominent member of the Padres’ biggest rival.
“This is the first that I’ve sent one over in admiration for what someone has done for the game,” said Musgrove, who grew up a Padres fan before ultimately pitching for the club. “I know he’s flooded with them now, and it might seem like a lot, but he’s made a big impact on this game — not only as a player, but for the way he handles himself.”
Kershaw will make his final regular-season start at Dodger Stadium on Friday, in what we now know will be one of the last appearances of his career. But even before the news of his impending retirement became official Thursday, the likelihood of it was high enough for Major League Baseball to extend him a special invitation to this year’s All-Star Game. And for a number of opposing players to seek opportunities to pay respect in their own way, whether it’s offering praise, expressing gratitude or, often, seeking autographs.
Kershaw, 37, has noticed that jersey requests have “slightly increased from years past” but stressed it’s “nothing crazy.” Sometimes a home series will go by and nobody will ask. Others, he’ll be flooded with them. “It’s like they all talk,” Kershaw said. He signs them all, either by listing his accomplishments — 3X NL Cy Young, 2014 NL MVP, 2X WS Champ! as he wrote on one for Colorado Rockies starter Kyle Freeland — or scribbling a brief message. In his mind, it wasn’t long ago that he was on the other side.
“It’s amazing how fast that flips, you know?” Kershaw told ESPN last week. “You don’t think that you’re the old guy until it happens, and then you are. It happens fast.”
But when Kershaw rejoined the rotation in the middle of May, in the wake of offseason knee and toe surgeries, he helped stabilize a staff that had once again absorbed an avalanche of injuries. In August, as the Dodgers’ rotation began to round into form, he found another level, winning all five of his starts while posting a 1.88 ERA. Kershaw is throwing the slowest fastball of his career, offsetting it with a slider that oftentimes lacks its traditional bite and resorting to more inventiveness than ever, even with the occasional eephus pitch. And yet his record is 10-2 and his ERA is 3.53.
“He’s making jokes about how he’s only throwing 86, 87 — and he’s still getting outs,” San Francisco Giants starter Logan Webb said. “To me that’s the most impressive thing.”
Webb was a 12-year-old in Northern California when Kershaw made his major league debut. His high school years coincided with a four-year stretch from 2011 to 2014 that saw Kershaw claim three Cy Young Awards and an MVP, accumulate 72 regular-season victories, tally 895⅓ innings and establish himself as one of the greatest of his era. Competing against him, as a fellow frontline starter on a division rival, hasn’t taken any of the shine away.
Said Webb: “He seems to amaze me every single time.”
Two months ago, Webb shared an All-Star team with Kershaw for the first time and was adamant about securing a jersey from him, even though, he said, “I usually feel awful asking guys.” On Friday, Webb will watch from the opposite dugout as Kershaw makes what might be the final Dodger Stadium appearance of his career, depending on how he factors into L.A.’s October plans.
The Dodgers boast a six-man rotation at the moment, and two of those members, Yamamoto and Snell, are basically guaranteed to start in a best-of-three wild-card series. The third spot would go to Ohtani, unless the Dodgers surprise outsiders by deploying him as a reliever. Then there’s Glasnow, who was lavished with a $130 million-plus extension to take down important starts, and Sheehan, a promising right-hander who has been effective out of the bullpen.
Kershaw wasn’t healthy enough to contribute to last year’s championship run and wants nothing more than to help with this one. But he’s also realistic.
“We’ll see,” Kershaw said. “We’ll see what happens. My job is just to pitch well. Whatever decision they make, or if I get to make a start or do whatever — they’re going to make the best decision for the team. I’ll understand either way. Obviously making it hard for them is what I want to do.”
Dodgers manager Dave Roberts doesn’t know what role Kershaw might play on a postseason roster, but he said “there’s a place for him” on it.
“The bottom line is I trust him,” Roberts said. “And for me, the postseason is about players you trust.”
ANDREW ABBOTT SAT alongside Cincinnati Reds teammate Chase Burns in Dodger Stadium’s first-base dugout on Aug. 26 and couldn’t understand what he was seeing.
“Is that a changeup?” he asked.
Kershaw famously doesn’t throw many changeups, largely because he has never been confident in his ability to do so. But suddenly Abbott was watching him uncork a pitch that traveled in the low 80s and faded away from opposing right-handed hitters, the continuation of a split-change he began to incorporate a couple years ago. To Abbott, it spoke to the ingenuity that has extended Kershaw’s effectiveness.
“He knows what he’s doing,” Abbott said. “He can just figure things out on the fly.”
The Reds’ third-year starting pitcher had shared a clubhouse with Kershaw for the first time during the All-Star Game in Atlanta this summer. He wanted so badly to pick his brain about pitch sequencing, but he also didn’t want to waste Kershaw’s time; he made small talk about their Dallas ties and left it at that.
Six weeks later, when the Reds visited Dodger Stadium, Abbott made it a point to provide a visiting clubhouse attendant with a Kershaw jersey to be sent to the other side for a signature. He already had one of Christian Yelich, who represented his first strikeout; Edwin Diaz, the brother of his former teammate, Alexis; Joey Votto, a Reds legend; and Aaron Judge, arguably the best hitter on the planet. Abbott initially didn’t want to bother Kershaw, worried that he might just be adding to an overwhelming pile, but he couldn’t run the risk of missing what might be his final opportunity.
“I watched Kersh since I was a kid,” Abbott said. “I mean, I was 9 when he debuted. I just like to have guys that I’ve watched and I’ve kind of idolized. Those are the ones I go after. It’s cool that you’re in the job with him, too.”
After spending the past four years pitching for two of their biggest rivals — first the Padres, then the Giants — Snell signed a five-year, $182 million contract with the Dodgers over the offseason and told president of baseball operations Andrew Friedman that he wanted his locker next to Kershaw’s. Snell’s locker neighbored Kershaw’s in spring training, and he now resides just two lockers down inside Dodger Stadium’s newly renovated home clubhouse.
As a fellow left-hander, Snell has tried to soak up as much as he can from watching Kershaw, specifically how he utilizes his slider. He has learned, though, that a lot of his success is driven by his mindset.
“He never gives in,” Snell said. “He’s a competitor. And you can’t, like, train that or teach that. You either have it or you don’t. And he’s very elite at competing. The game comes, and he’s the best version of himself.”
Snell arrived in the major leagues as a 23-year-old former first-round pick. But he did not believe he would stay very long, so he made it a point to gather as many personalized jerseys as he could. He already has two framed Kershaw jerseys hanging on an office wall littered with other sports memorabilia, but the end of his first year with the Dodgers has left him wondering if he has enough.
Said Snell: “I might get me another one.”
TO THOSE WHO have observed Kershaw throughout his career, the thought that he would even allow himself to be mic’d up while pitching in a game — let alone revel in it — stood as a clear indication that this would probably be it. Roberts, who managed the National League All-Stars earlier this summer, noticed a more reflective, appreciative side to Kershaw even before he took the mound for his 11th Midsummer Classic.
Roberts noticed it when Kershaw addressed his NL teammates before the game, reminding them this was an opportunity to honor those who got them there. He noticed it 13 days before that, on the night of July 2, when Kershaw finished a six-inning outing with the 3,000th strikeout of his career and spilled onto the field to acknowledge the fans. Most of all, he’s noticed it through the ease with which Kershaw seems to carry himself this season. “The edges,” Roberts said, “aren’t as hard anymore.”
“He knows he’s had a tremendous career, and I think that now he’s making it a point. He’s being intentional about taking in every moment.”
Kershaw allowed himself to savor his 3,000th strikeout — a milestone only 19 other pitchers have reached — and made a conscious effort to take in every moment at this year’s All-Star Game. His wife, Ellen, and their four children have made it a point to travel for every one of his starts this season, even when Texas schools re-started earlier this month, adding a layer of sentimentality to the stretch run of his season.
But for as much as Kershaw would like to soak in every inning remaining in his major league career, he can’t. The season keeps going, the stakes keep ratcheting up, and Kershaw believes in the link between dismissing success and maintaining an edge. “The minute you savor, the minute you think about success, you’re content,” he said. But that also means he can’t truly enjoy the end.
There’s a cruelty in that.
“Yeah,” Kershaw said, “but that’s OK. Because you want to go out competing, just like you always did. At the end of the day, being healthy, being able to compete and pitch well, being on a great team — that’s all you can ask for. If you do all of the other stuff, you become content or satisfied or whatever it is. Then it’s all downhill.”
Hyundai issued a recall for nearly 600,000 vehicles in the US, including the popular Palisade SUV and several IONIQ electric vehicles.
Hyundai Palisade and IONIQ EV recall details
In a notice to the National Highway Traffic Safety Administration (NHTSA) on September 12, Hyundai announced a recall of 568,580 2020-2025 model year Palisade vehicles.
The recall is due to faulty seat belt buckles in the front and rear, which may fail to latch. Although Hyundai expects only about 1% of the Palisade models actually have the defect, it’s issuing the recall out of an abundance of caution.
Hyundai said those with impacted vehicles may notice a lighter-than-normal “click” when fastening the seatbelt. You can bring it to a Hyundai dealer, where they will fix the seatbelt, free of charge.
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Owner notification letters are expected to be mailed on November 10, 2025. You can contact Hyundai’s customer service at 1-855-371-9460 with any questions. Hyundai’s recall number is 283.
Hyundai IONIQ 6 Limited (Source: Hyundai)
In a separate notice sent to the NHTSA on September 12, Hyundai issued another recall for 31,042 2023 – 2025 IONIQ 6 EV models because the charging port door panel could detach.
Again, Hyundai expects only about 1% of them to have the defect. Those impacted can bring their vehicle to a local Hyundai dealer, where they will fix the port, free of charge.
Owner notification letters will also go out on November 10. Hyundai’s recall number for the IONIQ 6 is 282. Owners can contact Hyundai’s customer service hotline (listed above) with any questions.
The 2025 Hyundai IONIQ 5 at a Tesla Supercharger (Source: Hyundai)
But, wait, that’s not all. Hyundai issued a third recall on September 12 for just eight 2025 IONIQ 5 models due to improperly tightened fasteners that could loosen over time. Dealers will replace the bolts, align the wheels, and even replace the tires if needed, free of charge.
If you own any of the recalled vehicles, you can contact Hyundai’s customer service or NHTSA hotline (1-888-327-4236) with questions. You can also visit NHTSA.gov for more information.
Hyundai’s recalls follow Toyota, which issued a recall for over 590,000 vehicles in the US. Between the two, a combined 1.1 million cars have been recalled.
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Apple CEO Tim Cook said price hikes on the newest iPhone models aren’t tied to President Donald Trump’s sweeping tariff plans.
“There’s no increase for tariffs in the prices to be totally clear,” Cook told CNBC’s Jim Cramer from Apple’s Fifth Avenue store location in New York City, as the latest iPhone model launched in stores worldwide.
Earlier this month, Apple increased the price of its iPhone 17 Pro model by $100, while maintaining the prices of its entry-level phones. It also introduced an Air model that replaced the Plus at steeper price point.
Many analysts had widely anticipated price hikes despite Cook’s attempts to dodge tariffs.
To circumvent the levies, Apple has pivoted its supply chain to import iPhones to the U.S. from lower tariff countries, such as India and Vietnam. Apple has historically produced a majority of its products in China.
Cook has also made public appearances with Trump as the company commits at least $600 billion toward bolstering U.S. manufacturing and supporting suppliers.
During the June quarter, Cook revealed that the company took an $800-million hit from costs tied to tariffs.
At the same time, Apple faces questions about its slow AI rollout, as well as rising competition in international markets such as China.
“We have AI everywhere in the phone,” Cook told CNBC on Friday. “We just don’t call it” that.