Business

US economy adds 559,000 jobs in May as unemployment falls to 5.8%


The US economy created 559,000 jobs in May as unemployment fell to 5.8%, suggesting the labor market has recovered somewhat amid fears that a shortage of workers is holding it back.

Non-farm payrolls data released by the US Department of Labor on Friday were slightly worse than economists’ expectations of about 650,000 jobs, but improved from 278,000 jobs in April.

The figures were released at a crucial moment for the US economy, which grew sharply due to the lifting of epidemic restrictions across the country and a major boost to fiscal stimulus. inflation,

At the same time, entrepreneurs are complaining that they are struggling to recoup workers in order to overcome the high demand, which is pushing them to raise wages to attract new employees.

The drop in the unemployment rate from 6.1 percent in April to 6 percent for the first time since the epidemic began, but labor force participation declined, suggesting that there is still some hesitation among Americans to return to the workforce immediately.

The April job report fell sharply short of economists’ expectations, far below the March job creation rate, raising fears. lack of manpower could hurt the US economic recovery forever.

That weakness led to bets in the May report, which carefully sought to prove that the slow hiring in April warns of a wider problem or temporary phenomenon due to the local effects of the virus, the closure of schools and the government. transfers that will eventually be resolved.

Recruitment in the leisure և hospitality sector fell from 328,000 in April to 292,000 in May, but other areas, including transport և storage, manufacturing, health և temporary jobs, improved.

The May Labor Report comes as Federal Reserve policymakers begin discussing mitigating the massive monetary stimulus to the US economy since the epidemic began.

The central bank has been buying $ 120 billion in assets every month since last year, and monetary policymakers warn that start talking They have not yet said when they expect to start the process of buying bonds.

“We’ve driven as far as the economist estimates,” said Emily Roland, chief investment officer at Hank Hancock Investment Management. “It seems that there is a small air pocket in the restoration of jobs, the recovery of the labor market may take longer than expected.”

Roland said the “disappointing” job report encouraged the Fed to be patient when it came to removing its political support.

“Today’s job report shows that the FD is right to say that there is a way to go until we see maximum employment,” he said.

US government bonds rose lower than expected on Friday morning trading in New York. The 10-year benchmark was down 0.02 percentage points per day, or about 1.6 percent.

The five-year treasury yield was collected more sharply. Yields fell more than 0.03 percentage points to 0.8 percent, while two-year treasuries, which are more sensitive to changes in monetary policy, stabilized at about 0.15 percent.

The Biden administration was surprised wear protective in April, as Republicans questioned the effectiveness of its economic policies. The White House will be happy to rent in May.

US President Edo Biden is expected to speak on Friday morning about data from Rehoboth Beach in Delaware.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button