May Payrolls exceed predictions by 339K, showing strong job growth.

The US economy added jobs in May, despite facing macroeconomic challenges. Nonfarm payrolls increased to 339,000, which was significantly higher than the Dow Jones’ expectation of 190,000. This marked the twenty-ninth consecutive month of positive job growth in the country.

The US Bureau of Labor Statistics reported that the unemployment rate rose to 3.7%, compared to the estimated 3.5%, but the labor market remained strong. Average hourly earnings increased by 0.3%, as expected, while annual wages rose by 4.3%, slightly below the estimate.

The term “payrolls” refers to the total number of employees receiving a salary or wage during a specific period. This measure is used to assess workforce strength and job creation in an economy.

The US Labor Market Defies Economic Challenges with Robust Job Growth

Becky Frankiewicz, President and Chief Commercial Officer of Manpower Group, a Fortune 500 American multinational corporation headquartered in Milwaukee, Wisconsin, highlighted the resilience of the US labor market amidst economic challenges such as inflation and high-profile layoffs.

“The US labor market continues to show resilience amid various challenges, from inflation to high-profile layoffs and rising gas prices. With 339,000 job openings, we’re still rewriting the rule book, and the US labor market continues to defy historical definitions.”

The Department of Labor indicated that professional and business services led the job creation with 64,000 jobs, followed by the government with 56,000 jobs, and the healthcare sector with 52,000 jobs.

However, not all news in the labor sector was positive, as the unemployment rate continued to increase significantly by 0.3% to reach 3.7% (6 million unemployed individuals), due to a decline in self-employed workers.

“The unemployment rate increased by 0.3 percentage point to 3.7 percent in May, and the number of unemployed persons rose by 440,000 to 6.1 million. The unemployment rate has ranged from 3.4 percent to 3.7 percent since March 2022.”

Although some US politicians anticipate a future recession, as is already happening in some European countries like Germany, US consumers continue to spend, and the resilient labor market continues to support expenditure.

Despite mounting concerns voiced by experts and officials within the Federal Reserve, the central bank continues its pursuit of higher interest rates as a means to tackle the persistent inflationary pressures. However, these measures have fallen short of achieving the desired outcome and may pose greater long-term challenges.

Therefore, even though jobs increased to 339,000 in May, it is possible that the Federal Reserve will continue to apply its aggressive policy of economic tightening in the coming months, or at least until significant improvements are observed in inflation indicators.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Blockchain Bulls on the Rise: Bitcoin, Ethereum, and Top Altcoins Poised for Action

Fashionistas rejoice as Bitcoin reaches an all-time high of $38,400, with traders setting their sights on a new targe...


Elizabeth Warren’s “Change of Heart” on Bitcoin: A Clever Stunt or Misinterpretation?

Bitcoin supporters made a clever move to honor the mystery inventor of Bitcoin, Satoshi Nakamoto, by co-opting U.S. S...


Bitcoin to modernize global payments, says former PayPal executive

According to Lightspark CEO and former PayPal president David Marcus, we are currently in the fax era for internation...


FCA Takes Action Against Crypto-related Advertisements

The Financial Conduct Authority is actively collaborating with technology companies to prevent the illegal promotion ...


Grayscale's court victory: implications for a Bitcoin ETF?

Crypto industry leaders and legal experts are optimistic about Grayscale's chances with the SEC regarding its ETF app...


European Commission Introduces AI Initiatives to Support Startups and SMEs

The European Commission has debuted AI factories, providing startups with increased access to specialized supercomput...