U.S. Economy and Job Market Report

SOURCE www.cnbc.com
The U.S. economy added more jobs than expected in May, reducing the Federal Reserve's impetus to lower interest rates. Unemployment rate rose to 4% and wage growth was higher than expected.

Key Points

  • Unemployment rate increased to 4%
  • Wage growth exceeded expectations, rising 0.4% on the month and 4.1% from a year ago
  • Job gains were concentrated in health care, government, and leisure and hospitality sectors

Pros

  • Nonfarm payrolls expanded by 272,000 in May, exceeding expectations
  • Wage growth was higher than expected, rising 0.4% on the month and 4.1% from a year ago
  • Job gains were concentrated in health care, government, and leisure and hospitality sectors

Cons

  • Unemployment rate rose to 4%, breaching the 4% level for the first time since January 2022
  • Household employment saw a significant decrease with full-time workers declining by 625,000