The US economy adds more jobs than expected in May

Friday, June 07, 2024 - 13:40
Point Trader Group

The US economy added 272,000 jobs in May, higher than analysts' expectations of 182,000 jobs.

According to data from the US Bureau of Labor Statistics issued today, Friday, June 7, the unemployment rate in the country with the largest economy in the world rose to 4%.

This is the first time the unemployment rate has exceeded those levels since January 2022.

The increase in the unemployment rate in America came despite the decline in the labor force participation rate to 62.5%, which represents a decline of about 0.2%.

The total number of jobs added by the economy in April was revised down by 10,000 to 165,000.

The health care sector accounted for the largest share of the number of new jobs, at 68 thousand. While the hospitality sector attracted 42 thousand jobs.

Regarding wages, average hourly wages were higher than expectations, increasing by about 0.4% on a monthly basis and by 4.1% on an annual basis. Expectations indicated an increase of 0.3% and 3.9%, respectively.

How did the market react to the data?

US index futures declined after the data was released, with Dow Jones contracts falling by about 0.3% to 38,811 points.

Gold contracts also deepened their losses by more than $55 to $2,334 per ounce.

Investors are currently watching how the jobs data will affect the Fed’s decisions in the coming period, especially since market expectations currently indicate that the first rate cut will occur in September.

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