Trump adviser Kevin Hassett says May jobs report shows labor market 'hitting on all cylinders'
The May jobs report may have given the White House a much-needed dose of optimism on the back of a difficult geopolitical backdrop
That is the case, NEC director and top Trump advisor Kevin Hassett said after the latest government data landed.
For context, the May U.S. jobs report was released by the Bureau of Labor Statistics on Friday, June 5, 2026, showing the economy added 172,000 jobs while the unemployment rate held at 4.3%.
Hassett made the broader argument that, in his view, hiring remains robust, revisions are moving in the right direction, and the economy might be stronger than some skeptics expect, in a recent CNBC interview.
What was shocking, though, was that even though he called the labor market "hitting on all cylinders," he said that it wasn't a typical overheating jobs report.
Instead, it was more of a supply-side-driven boom, meaning the economy could grow at a remarkable pace without reigniting inflation.
That isn't exactly the most popular opinion out there, considering Goldman Sachs COO John Waldron recently discussed persistent inflation and how it could potentially delay interest rate cuts.
U.S. labor market keeps growing as wage gains cool
- The U.S. economy added 172,000 jobs in May, down 3.9% from April's revised 179,000 gain.
- The unemployment rate was unchanged at 4.3%, with a 0% month-over-month change, and has hovered between 4.3% and 4.5% since July 2025.
- Leisure and hospitality was the standout in the report with 70,000 jobs, five times its prior 12-month average of 14,000 monthly gains.
- Local government added 55,000 jobs, with health care adding 35,000, below its prior 12-month average of 38,000.
- Wages rose 12 cents, or 0.3%, to $37.53 an hour, while annual wage growth reached 3.4%.
- The weak spot was financial activities, which lost 22,000 jobs and are down 107,000 from May 2025.
Source: Bureau of Labor Statistics (BLS) report.
Who is Kevin Hassett?
Kevin Hassett currently serves as one of President Donald Trump's leading economic advisors, specifically as the director of the National Economic Council.
That's a critical White House role that involves coordinating the regime's domestic and international economic policy agenda.
Hence, he is one of the key messengers on jobs, inflation, tariffs, taxes, consumer spending, and the overall direction of the U.S. economy.
MoreEconomy:
- Ernst & Young drops stunning take on economy as oil jumps
- Treasure secretary delivers surprise take on the economy
- Powell sends message on U.S. economy and AI-related job loss fear
For context, he isn't new to Trump's orbit.
In Trump's first term, he served as the 29th chairman of the Council of Economic Advisers from 2017 to 2019, later returning as a senior adviser during the Covid-era economic response.
Moreover, over the years, he has gained extensive experience in economic policy, including time at the Hoover Institution, the American Enterprise Institute, and the Milken Institute, as well as at the Federal Reserve Board as an economist.
Hassett argues the labor market is stronger than it looks
Hassett said the May jobs report had a ton of depth, especially given upward revisions.
He pointed to multiple consecutive monthly job gains in the 170,000 range, arguing that upward revisions shifted the tone of the report.
"Obviously, you're right that a couple of 170s in a row, that's a great couple of months, but then having upward revisions of around 100,000 means that this is a job market that's hitting on all cylinders."
More importantly, Hasset doesn't treat the labor market as overheated in the traditional sense.
Instead, he argues that the strength is mainly driven by supply-side policy, which offers the Federal Reserve greater flexibility.
"I don't think it's a classic Phillips curve, here goes inflation, it's going to take off kind of jobs market."
Additionally, he noted the strength of the labor market, saying that quit rates and layoffs were near historical lows.
Jim Cramer challenges the White House's jobs-market optimism
Veteran stock market analyst Jim Cramer pushed back on Hassett's upbeatness on the jobs market.
Cramer argued that many lower-income consumers were still under immense duress from housing costs, sluggish benefits, and higher everyday costs.
"There's a considerable part of the people who are not doing well in this country, and they need the help of the Fed. And I am surprised that you're not addressing those people, the people who make less than $40,000 in this country who need help."
Cramer also discussed discount retailers and homebuilders as evidence that certain parts of the economy were strained, even as headline jobs data looked strong.
He argued that people who cannot afford homes or cheaper credit deserve rate cuts.
Hasset clarified that he wasn't calling for rate hikes, and that the Fed has the flexibility to cut rates, as job strength was mostly supply-driven rather than inflationary.
He did acknowledge, however, that the Fed has been behind the curve.
"I think that there's been plenty of room for a rate cut lately. And now we've got a new guy in town at the Fed who hopefully is going to be able to get things to be seen that way."
Related: Goldman Sachs delivers clear message on interest rate cuts
The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
This story was originally published June 7, 2026 at 12:47 PM.