Jobs report beats, unemployment rate falls to 18-year low

pulse

June 1, 2018 1:44 PM

The jobs report showed that in May, employers hired more people than economists had forecast. The unemployment rate fell to 3.8%, the lowest level since April 2000, and wages also increased by more than expected. May marked the 92nd straight month of jobs growth in the US — the longest stretch ever.

The US unemployment rate dropped to an 18-year low of 3.8% in May and employers hired more people than economists had forecast, according to the jobs report released on Friday.
Wages also grew faster than expected — a sign that the tighter labor market is prompting employers to pay workers more.
May marked the 92nd straight month of job growth in the US. There's never been such a streak.

US employers added 223,000 nonfarm payrolls in May, more than expected, while the unemployment rate fell to an 18-year low of 3.8%, according to the jobs report released on Friday.

Economists had forecast that employers added 190,000 jobs on net while the unemployment rate remained at 3.9%.

May was the 92nd straight month of job growth in the US — the longest streak ever. Most of the hiring last month came from the healthcare, construction, and retail industries.

Job openings are at a two-decade high, according to the most recent data from the Bureau of Labor Statistics, and that's good news for the droves of young people who recently graduated.

Anecdotally, companies continue to lament about how difficult it is to fill positions for highly skilled workers and how they're having to pay up to retain talent.

Wage growth, which has been depressed during most of this economic recovery, increased by more than expected last month. This signals that the tighter labor market is prompting employers to pay workers more. Average hourly earnings rose 0.3% month-on-month (0.2% forecast), and 2.7% year-on-year (2.6% expected).

They're captured in the so-called U-6 unemployment rate, which also includes people who work part-time but would rather be full-time and is higher than the headline rate. The good news, however, is that the gap between these two rates has been shrinking.

"Looking forward to seeing the employment numbers at 8:30 this morning," President Donald Trump tweeted on Friday. The President and other senior members of his administration are privy to the report the day before it's released.

The black unemployment rate, which Trump celebrated as it declined, fell to a new low of 5.9%.

Last month's strong employment situation makes it even more likely that the Federal Reserve will raise its benchmark interest rate again when it meets in two weeks.

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