U.S. economy adds 272,000 jobs in May as hiring stays hot
Add Axios as your preferred source to
see more of our stories on Google.
The U.S. economy added 272,000 jobs in May, while the unemployment rate edged up to 4% from 3.9%, the Labor Department said on Friday.
Why it matters: The boom in hiring shows workers are still in demand.
- May payrolls came in well-above the gain of 190,000 that economists anticipated.
- Job gains for April were revised down by 10,000, the Labor Department said. In March, the economy added 315,000 jobs — only slightly lower than initially estimated.
Yes, but: The jobless rate did tick up slightly, ending an historic streak in which it held below 4%.
By the numbers: Among the sectors that added jobs in May: health care, government and leisure and hospitality.
- Average hourly earnings rose 0.4%, or 4.1% compared to the same period a year ago.
The big picture: The Federal Reserve wants to see signs the labor market is coming into better balance—that is, demand for workers catching up to the supply of them.
- Recent indicators have shown that to be the case: Data this week showed that employers are posting fewer job openings.
- Fed officials are all but certain to hold interest rates at a two-decade high at their policy meeting next week, as they wait for more evidence that price pressures are easing.
Go deeper: How Biden's border restrictions could affect the labor market
Editor's note: This story was updated with a new chart.
