The United States added more than expected 390,000 new jobs in May. This shows that the labor market remains strong despite the struggle for the edge.
Economists surveyed by The Wall Street Journal predicted a slight increase in 328,000 new jobs after several reports leading to a government employment survey suggested a slowdown in employment last month.
Employment growth is minimal in 13 months, breaking 12 consecutive growths of at least 400,000 or more. Still, economists say employment growth must slow as the United States recovers most of the work lost during the pandemic.
The unemployment rate remains unchanged at 3.6%, The government said on fridayAnd slightly above the pre-pandemic lows.
In pre-market trading, Dow Jones Industrial Average 30 species average
And S & P 500
It was set to open below. After reporting the work, the inventory remained almost unchanged.
Wall Street investors and the Federal Reserve Board were fully vigilant before the May employment report. Investors are looking for clues that the economy is starting to soften as central banks are moving to significantly raise and curb interest rates. Highest inflation in 40 years.
As part of that, the Federal Reserve wants to cool the red-hot labor market a bit to prevent further upward pressure on inflation. Wages have skyrocketed over the past year and now the cost of business has increased significantly.
May hourly wages rose 10 cents (0.3%) to $ 31.95.
However, the increase in worker salaries over the past year has slowed from 5.5% to 5.2%. Wages have risen at the fastest pace since the early 1980s, but the rise appears to be declining.
Even with high salaries, workers cannot keep up with their living expenses.
Inflation has risen 8.3% over the past year and is expected to slow, but Americans can’t expect much easing in the near future.
Big picture: Wall Street and Washington want a labor market like Goldilocks. Don’t be too hot and not too cool. The May report seems to be in compliance with the bill.
The longer the labor market is vibrant, the higher wages can be in a business battle for workers. It exacerbates inflation and can lead to a horrifying wage-price spiral that the United States hasn’t seen since the 1970s.
If the employment market gets too cold, consumer spending can be curtailed and concerns about a recession can rise. Rising interest rates will almost certainly slow the economy.
U.S. economy adds solid 390,000 jobs in May
Source link U.S. economy adds solid 390,000 jobs in May