U.S. Economy Shows Resilience with Continued Job Growth in May
Despite facing numerous challenges, the U.S. economy added jobs in May, demonstrating its resilience.
According to a recent report, payrolls grew by 339,000 jobs, significantly exceeding the Dow Jones forecast of 190,000. This marks the 29th consecutive month of job growth.
Although the unemployment rate increased to 3.7%, it remains close to the lowest level since 1969. Average hourly wages saw a 0.3% increase, aligning with expectations.
Professional and Business Services Lead the Jobs Growth
In May, professional and business services topped the list of job creators, adding 64,000 new positions. Government jobs increased by 56,000, while the health care sector contributed 52,000 jobs. Other sectors showing notable gains include leisure and hospitality (48,000), construction (25,000), and transportation and warehousing (24,000).
Despite robust hiring, the unemployment rate rose, partly due to a significant drop of 369,000 in self-employment. Additionally, average weekly hours worked fell to 34.3, the lowest since April 2020. An alternative unemployment measure, which includes discouraged workers and part-time employees for economic reasons, also inched up to 6.7%.
May’s employment data suggests that the economy is far from entering a recession, as noted by Jan Hatzius of Goldman Sachs. Ongoing consumer spending and a strong labor market have been crucial in supporting this growth.
