The healthcare sector added 16,000 jobs while construction and manufacturing contributed 4,000 and 3,000 jobs, respectively.
The latest jobs data suggests an interest rate cut may be imminent.
The unemployment rate remained at 3.6%, however, meaning that joblessness is still hovering near a half-century low.
The economy is showing signs of sluggishness after having expanded at a healthy 3.1% annual rate in the April-June quarter. More jobs lead to higher incomes and more consumer spending. "Given the mounting pressure from tariffs, market volatility, slowing economic growth internationally and hazy forecasts for interest rates, businesses understandably feel less confident about the environment they will be operating in", Steve Rick, chief economist at CUNA Mutual Group, said in an email. St. Louis Fed President James Bullard, who votes on policy this year, this week became the first official to indicate likely support for a rate cut; others suggested they're waiting for more data. Employers have added 164,000 jobs per month on average in 2019, compared with 223,000 jobs per month a year ago.
"Whereas the USA jobless fee stays at its historic low of 3.6%, a ways fewer jobs are being created and wage rises are modest", acknowledged David Lamb, head of dealing at Fexco Company Payments.
Fratantoni added that the outlook for home sales and mortgage activity this summer remains brighter than previous year, however, given that mortgage rates have fallen recently. So have the education and health services industries.
Huawei Responds THIS WAY After WhatsApp, Instagram Apps Banned on Devices
Reuters is reporting that Facebook is now joining Google, Microsoft, Qualcomm, and others in the Huawei ban . Google is warning the USA government that its ban on Huawei may actually compromise national security.
In the last 12 months, wages have increased by 3.1 per cent. Last month, he increased tariffs on Dollars 200 billion in Chinese imports from 10 per cent to 25 per cent.
China responded to the USA tariffs by imposing its own on $110 billion of US goods.
The higher costs from the import taxes - and the potential for more - are causing some companies to scale back plans for spending, investment and expansion. Orders for machinery and equipment fell 1 percent in April. Chief US economist Tom Porcelli at RBC Capital Markets in NY said: "This number is just going to feed the narrative of the Fed imminently cutting rates".
Flooding in the central US may have reduced the May payroll number by 40,000 jobs, Hassett said on Bloomberg Television.
Manufacturing and construction saw particularly anemic job growth in May, one of the clearest signs that Trump's tariffs are having a negative impact on blue-collar sectors the president has been trying to boost.
However, wage growth also decelerated slightly, with average hourly earnings rising 3.1% from a year earlier, down from a 3.2% rate in April.
Home sales have been weak this year despite a sharp drop in mortgage rates.