(NewsNation) — U.S. employers added 139,000 jobs to the economy in May despite uncertainty over President Donald Trump’s tariffs, according to new data from the Labor Department.

The unemployment rate remains unchanged at 4.2 percent; it has hovered in a range of 4 to 4.2 percent since May of 2024.

Matthew Nestler, a senior economist with accounting firm KPMG, told NewsNation that even though the numbers this month exceeded expectations, the raw number is not telling the full story because there is a “soft underbelly” that shows cracks starting to form in the foundation of the labor market.

“The job reports aren’t also fully incorporating cuts at the federal government level, so those on administrative leave or severance pay may not show up until October,” Nestler said. “Though the unemployment rate stayed at 4.2 percent, it stayed for all the wrong reasons.”

Nestler added the steady unemployment rate was due to a drop in participation, especially among foreign-born workers and that the country is already seeing the impact of immigration crackdowns on employment with a decrease in roles in elder care industry positions over the past few months.