STRONG US JOB GROWTH IN MAY, UNEMPLOYMENT RATE AT 3.7%
.png)
US JOB GROWTH OUTPERFORMED FORECASTS IN MAY, AS THE UNEMPLOYMENT RATE INCREASED TO 3.7%.
Despite a higher-than-anticipated gain in employment in the United States in May, the Federal Reserve may decide not to raise interest rates this month for the first time since beginning its aggressive policy-tightening campaign more than a year ago due to a deceleration in pay growth.
The Labour Department reported on Friday that nonfarm payrolls rose by 339,000 last month, according to the closely followed employment data. After data for April was updated, 294,000 new positions were added to the payroll, not the previously reported 253,000.
Reuters polled economists, who predicted a 191,000 increase in payrolls.
The unemployment rate increased from a 53-year low of 3.4% in April to 3.7% despite significant hiring.
Additionally, wage pressures are easing, which should provide some solace to Fed officials working to get inflation down to the 2% objective set by the U.S. central bank. After increasing by 0.4% in April, the average hourly wage increased by 0.3%. As a result, after rising 4.4% in April, the year-over-year growth in earnings was reduced to 4.3%. Prior to the pandemic, annual salary growth averaged roughly 2.8%.
Although further areas of weakness are developing, the report showed that the labour market remained robust and provided additional proof that the economy was still far from the predicted recession.
.png)
Comments
Post a Comment