May Jobs Report: More Jobs Added Than Expected

June 7, 2024

One step forward, two steps back. Today’s data undermines the message that other recent economic data have been giving of a cooling U.S. economy, and slams the door shut on a July rate cut.

Chief global strategist at Principal Asset Management, Seema Shah, regarding the May jobs report released by the U.S. Bureau of Labor Statistics.

Why It Matters: The U.S. economy added 272,000 jobs in May – much more than expected – while the unemployment rate increased slightly to 4%, the first time it has reached that level in nearly 2.5 years. The report indicates a stronger labor market and less likelihood the Federal Reserve will lower interest rates in coming months. Shah explains, “Not only has jobs growth exploded again, but wage growth has also surprised to the upside, both moving in the opposite direction to what the Fed needs to begin easing policy.”

Something To Consider: The three sectors that added the most jobs in May included health care, government and leisure and hospitality.

Read More: U.S. adds a much-better-than-expected 272,000 jobs in May, but unemployment rate edges up to 4% (CNBC)

The April Report (SmartHER News)

Photo Credit: Jason Goodman via Unsplash

by Emily Hooker, based in Texas