Payrolls rose by 339,000 in May, beating expectations and indicating a resilient labor market.
The US economy continued to generate jobs in May, despite macroeconomic difficulties. Non-farm payrolls rose to 339,000, well beating Dow Jones expectations of 190,000, as a result May marked the twenty-ninth straight month of positive job growth in the nation.
According to US Bureau of Labor Statistics, although the unemployment rate reached 3.7% against an estimated 3.5%, the labor market remained strong. Similarly, average hourly earnings increased by 0.3%, as expected, while annual wages increased by 4.3%, slightly below the estimate.
The term “payroll” refers to the total number of employees receiving a salary or salary during a given period. This measure is used to gauge the strength of the labor force and job creation in an economy.
U.S. Labor Market Defies Economic Challenges with Solid Job Growth
Becky Frankiewicz, President and Chief Commercial Officer of Manpower Group, an American Fortune 500 multinational corporation headquartered in Milwaukee, Wisconsin, Underline the resilience of the US labor market in the face of economic challenges such as inflation and significant layoffs.
“The U.S. job market continues to show resilience in the face of a variety of challenges, from inflation to high-profile layoffs and rising gas prices. With 339,000 job openings, we are still on the mend. rewrite the rule book, and the American labor market continues to defy historical definitions,” Frankiewicz said.
The Department of Labor said professional and business services led the way in job creation with 64,000 jobs, followed by government with 56,000 jobs and the health sector with 52,000 jobs.
Unemployment rate raises concerns despite positive labor market trends
Not all the news from the labor sector was positive, as the unemployment rate continued to increase significantly by 0.3% to 3.7% (6 million unemployed), due to a drop in workers independent.
“The unemployment rate rose 0.3 percentage points to 3.7% in May, and the number of unemployed increased by 440,000 to 6.1 million. The unemployment rate has varied from 3.4% to 3.7% since March 2022”, bed the press release on the employment situation.
Although some US politicians anticipate a future recession, as is already the case in some European countries such as Germany, US consumers continue to spend and the resilient labor market continues to support spending.
Despite growing concerns expressed by experts and Federal Reserve officials, the central bank continues its pursuit of higher interest rates as a way to combat lingering inflationary pressures. However, these measures did not achieve the desired result and could pose greater problems in the long term.
So even if the number of jobs increased to 339,000 in May, it is possible that the Federal Reserve will continue to apply its aggressive policy of economic tightening in the coming months, or at least until improvements significant are observed in the inflation indicators.
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