U.S. Labor Market Keeps Fed on Aggressive Rate Hike Path

06 June 2022

U.S. employers hired more workers than expected in May and maintained a fairly strong pace of wage increases, signs of labor market strength that will keep the Federal Reserve on an aggressive monetary policy tightening path to cool demand.

The survey of establishments showed that nonfarm payrolls increased by 390,000 jobs last month. Data for April was revised higher to show payrolls rising by 436,000 jobs instead of 428,000 as previously estimated. While May's job gains were the smallest in a year, they were way above the monthly average that prevailed before the COVID-19 pandemic in 2020.

The Labor Department's closely watched employment report on Friday also showed the unemployment rate holding steady at 3.6% for a third straight month, even as more people entered the labor force.

Average hourly earnings increased 0.3%, matching April's gain. That lowered the annual increase to a still-strong 5.2% from 5.5% in April.

Source:  Reuters
Post by: Republic of Turkiye Ministry of Trade