Yet another shockingly large increase in hiring in May suggests the U.S. labor market is still running hot, but some economists see a spike in the unemployment rate as a warning sign.
The economy added 339,000 jobs in May to mark the biggest increase in four months. Employment gains in April and March were also much stronger than previously reported. The surge in hiring last month, however, was also accompanied by an increase in the unemployment rate to 3.7% from 3.4%. It was the biggest one-month increase since the onset of the pandemic in March 2020
“The long-expected softening of the labor market has begun,” said chief economist Bill Adams of Comerica.Hourly pay rose a mild 0.3% in May, lowering the increase over the past year to 4.3% from 4.4%. Wage growth peaked at 5.9% last year.“Not only the payroll figures but pretty much every other measure of labor demand — job openings, online job listings, initial claims — indicate that the labor market remains hot,” said Stephen Stanley, chief economist at Santander U.S. Capital Markets.
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Source: Reuters - 🏆 2. / 97 Read more »