The economy added 339,000 jobs in May, defying the Federal Reserve’s efforts to cool the economy|Ashley Fisher|CC BY-SA 2.0
The economy added 339,000 jobs last month, but the unemployment rate inched up to 3.7% from 3.4%, the Labor Department said Friday.
Defying the Federal Reserve’s efforts to cool the economy—and despite bank failures and inflation—the job gains were above forecasters' estimates, indicating a hot labor market.
The labor force participation rate stayed at 62.6% in May. Hourly earnings rose by 0.3% and wages increased by 4.3% compared to the previous year.
Economists anticipate ongoing payroll growth throughout the year. Wall Street stocks traded higher, the dollar strengthened against multiple currencies, and the US Treasury prices declined.
What do the numbers mean?
The May job report is one of the indicators for the Federal Reserve officials that would help them decide whether to continue the interest rate hike at their next meeting. But the conflicting data may make the decision tricky.