![]() “We continue to see signs of a healthy and competitive job market, with no signs of stepping on the brakes yet.”įed still on track: The report offered little support for those hoping the Fed would reconsider its aggressive stance on inflation - a hope that has pushed stocks higher and rates lower over the last week or two. “Despite the slight cooldown, the tight labor market is clearly sticking around and is shrugging off fears of a downturn,” economist Daniel Zhao of Glassdoor said in a note. Real wage growth, however, was negative, as inflation continued to take a big bite out of worker pay. Nominal wage growth also moderated in May, falling from an annual rate of 5.5% to a still-robust 5.2%, helping ease fears about a potential wage-price spiral. Many analysts see that as good news, suggesting the pandemic recovery is slowing slightly but still far from stall speed. ![]() ![]() (The employment chart above from The Washington Post highlights just how strong the recovery has been.)Īlthough the report beat expectations, the May total did break a 12-month streak of job creation exceeding 400,000 per month. The labor force participation rate inched a tenth of a point higher, to 62.3%, and with more than 151 million people employed, payrolls are now less than 1 million below the pre-pandemic peak. The stronger-than-expected report shows that hiring remains robust, even as the Fed intensifies its effort to tamp down inflation through higher interest rates and quantitative tightening. Soft Landing Scenario for the Economy Boosted by Latest Jobs ReportĮmployers added 390,000 new jobs in May and the unemployment rate held steady at 3.6%, the Labor Department announced Friday, boosting hopes that the Federal Reserve can achieve a soft landing as it seeks to control a sustained burst of inflation that threatens to scar the U.S.
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