The Globe and Mail reports in its Saturday, June 7, edition that U.S. job growth slowed in May amid uncertainty over President Donald Trump's import tariffs, although solid wage growth could support economic expansion and allow the Federal Reserve to delay interest-rate cuts. A New York Times dispatch to The Globe reports that the Labor Department's report highlighted this trend, showing 95,000 fewer jobs were added in March and April than previously estimated. The unemployment rate remained steady at 4.2 per cent for the third month, as 625,000 people left the labour force, indicating decreased confidence in the job market. Surveys show that consumers are less optimistic about job prospects if laid off. Economists suggest that President Trump's inconsistent stance on import tariffs has hindered businesses' ability to plan and hire. Opposition from conservative Senate Republicans and Elon Musk to Mr. Trump's tax-cut and spending bill adds uncertainty for companies. Fitch Ratings' Olu Sonola says: "The labour market continues to slow steadily, but the sky is not falling. Given the backdrop of trade policy uncertainties, the Fed will be relieved with this report. The tariff landscape is still very uncertain."
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