Job numbers are out: employers added 272,000 jobs in May, indicating that the job market remains strong despite inflation and higher interest rates. The unemployment rate ticked up to 4 percent but is still historically low.
Economists had expected fewer job additions, and so the report was seen as a pleasant surprise. Wages are growing, with the average hourly pay increasing to $34.91 per hour — a 4.1 percent yearly rise.
While wage growth has slowed from the COVID-19 era shortages, it’s still above the Fed’s preferred rate for controlling inflation. The Fed is watching the numbers, as strong wage growth can fuel inflation. Economists don’t expect the Fed to cut rates soon, especially if inflation remains high.
Healthcare, leisure and hospitality, and professional services were among the industries hiring the most. The public sector also saw a rebound in job gains.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
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