Numbers: The United States added 390,000 new jobs in May, stronger than expected, indicating that the labor market and the broader economy are still strong.
According to a poll by The Wall Street Journal, economists predict a small increase in 328,000 new jobs.
The employment increase is the lowest in 13 months. However, economists say employment growth will slow as the United States recovers most of the jobs lost during the epidemic.
The unemployment rate remained unchanged at 3.6%. The government said FridayAnd there was only one tick higher than the pre-infection low dose.
The size of the labor force increased to 330,000 in May, raising the so-called participation rate from 62.2% to 62.3%. However, the share of people of working or working age is still below pre-epidemic levels.
In freemarket trading, stocks traded lower after the jobs report.
Wall Street investors and the Federal Reserve were on full alert before the May jobs report. Investors are looking for signs that the economy is starting to soften as the central bank raises interest rates sharply to control interest rates. The highest inflation in 40 years.
The central bank, for its part, wants to cool the red-hot labor market a bit to prevent further upward pressure on inflation. Wages have gone up over the past year and are now being added significantly to the cost of doing business.
Hourly wages rose 10 cents, or 0.3%, to $ 31.95 in May.
Workers’ wage growth has fallen from 5.5% to 5.2% in the past year. Although wages have risen sharply since the early 1980s, profits seem to be declining.
Despite higher wages, workers are still unable to cover the cost of living.
While inflation has risen to 8.3% in the past year and is expected to ease, Americans cannot expect much relief in the future.
Large image: The Wall Street Goldilocks kind of like the labor market: not too hot, but not too cold.
The labor market has long been struggling for workers, and higher wages may go up. This could worsen inflation and lead to a terrible wage-price cycle that the United States has not seen since the 1970s.
Yet if the jobs market gets too cold, it could lower consumer spending and increase concerns about a recession. Economic growth is guaranteed to slow due to higher interest rates.
The hot May jobs report is likely to keep the central bank on track to sharply raise interest rates over the summer.
Key details: Restaurants and hotels are at the forefront of re-employment, adding 84,000 jobs. More and more people are going out to eat, travel or vacation
Employment rose to 75,000 in professional businesses, 47,000 in transport and warehouses, and 36,000 in construction.
Governments also added 57,000 jobs.
Retail is the only job-grabbing industry. Employment fell by 61,000.
Hiring changed slightly in April (436,000) and March (398,000), revised figures show.
Looking ahead: “The U.S. labor market continues to fall. Despite concerns about a sluggish economy, employers continue to do so at a pace that adds to the workforce,” said Nick Bunker, research director at the Laboratory Laboratory.
“Another month of steady job growth in May is further evidence that the US economy is not in a recession in the spring,” said Bill Adams, chief economist at Bank of Comorica. “Americans continue to return to the labor force because the cost of living is squeezing housing finances.”