U.S Job Growth Jumps by 3.7% in May
U.S. job growth accelerated in May, authorities have said, but a jump in the unemployment rate to a seven-month high of 3.7% suggested that labor market conditions were easing.
There was an increase in the unemployment rate from a 53-year low of 3.4% in April reported by the Labor Department.
It was also partly the result of more people entering the labor force, an increase in supply that is reducing pressure on businesses to raise wages.
The survey of establishments showed nonfarm payrolls rose by 339,000 jobs last month.
Economists had forecast payrolls increasing by 190,000.
The economy created 93,000 more jobs in March and April than previously estimated.
The economy needs to add 70,000-100,000 jobs per month to keep up with growth in the working-age population.
Despite massive layoffs in the technology sector after companies over-hired during the COVID-19 pandemic and the drag from higher borrowing costs on housing and manufacturing, the services sector, including leisure and hospitality, is still catching up after businesses struggled to find workers over the last two years.
Industries like healthcare and education also experienced accelerated retirements.
Reuters/Hauwa Abu
