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Payrolls increased by 339,000 in May, exceeding expectations and indicating a resilient labor market.
The US economy continued to create jobs in May despite macroeconomic challenges. Non-farm payrolls rose to 339,000, surpassing Dow Jones’ expectations of 190,000, as a result, May marked the nation’s twenty-ninth consecutive month of positive job growth.
According to US Bureau of Labor StatisticsAlthough the unemployment rate rose to 3.7% compared to an estimated 3.5%, the labor market remained strong. Similarly, average hourly earnings rose 0.3%, as expected, while annual wages rose 4.3%, slightly below estimates.
The term “payroll” refers to the total number of employees receiving wages or salaries during a specific period. This measure is used to assess the strength of the workforce and job creation in the economy.
US labor market weathers economic challenges with strong job growth
Becky Frankiewicz, President and Chief Commercial Officer of Manpower Group, a Fortune 500 American multinational corporation headquartered in Milwaukee, Wisconsin, Thrown light on The resilience of the US labor market amid economic challenges such as inflation and high-profile layoffs.
“The US labor market continues to be resilient amid a variety of challenges, from inflation to high-profile layoffs and rising gas prices. With 339,000 job opportunities lost, we are still rewriting the rulebook, and the US labor market defying historical definitions.
The Labor Department indicated that professional and business services led job creation with 64,000 jobs, followed by government with 56,000 jobs and the healthcare sector with 52,000 jobs.
Unemployment rate raises concern despite positive job market trends
Not all news was positive in the labor sector, as the unemployment rate continued to rise significantly by 0.3% to reach 3.7% (6 million unemployed persons) due to a decline in self-employed workers.
“The unemployment rate rose 0.3 percentage points to 3.7 percent in May, and the number of unemployed persons rose by 440,000 to 6.1 million. The unemployment rate since March 2022 has been between 3.4 percent and 3.7 percent.
Although some US politicians anticipate a future recession, as is already occurring 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 officials within the Federal Reserve, the central bank’s effort to high interest rates As a means of dealing with persistent inflationary pressures. However, these measures have failed to achieve the desired results and may pose more long-term challenges.
Therefore, even though jobs increased by 339,000 in May, it is likely that the Federal Reserve will continue to implement its aggressive policy of economic tightening in the coming months, or at least until inflation indicators improve significantly. are not seen
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