Lincoln Tech CEO Scott Shaw explains in “Varney & Company” why young workers are seeking trades jobs:
U.S. job growth accelerated again in May, defying expectations of a slowdown even as the unemployment rate rose to its highest level in more than two years.
Employers added 272,000 jobs in May, the Labor Department said in its monthly payrolls report released Friday. Economists at LSEG had expected a rise of 185,000, but the unemployment rate unexpectedly rose to 4%, reversing their view that it would remain stable at 3.9%.
The unemployment rate reached its highest level since January 2022.
Wage growth was also strong last month, with average hourly earnings, a key indicator of inflation, rising 0.4%, better than expected. Year-on-year, wages rose 4.1% in May.
Markets are closely watching the report as evidence that the labor market continues to soften after months of solid job gains. Federal Reserve Policymakers are considering when to start cutting interest rates. Inflation has fallen sharply since the summer, though it has since peaked at 9.1%.
Officials have signalled they are in no rush to cut rates and will base their decision on upcoming economic data.
“One step forward, two steps back,” said Seema Shah, chief global strategist at Principal Asset Management. “Today’s data weakens the message of a cooling US economy that other recent economic data has sent and closes the door on a July rate cut. Not only has job growth exploded again, but wage growth has unexpectedly picked up, both of which are in the opposite direction to what’s needed for the Fed to begin easing policy.”
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones Average | 38886.17 | +78.84 | +0.20% |
| I:Comp | Nasdaq Composite Index | 17173.1207 | -14.78 | -0.09% |
| SP500 | S&P 500 | 5352.96 | -1.07 | -0.02% |
Health care continues to lead job creation, adding 68,000 new workers in May. Other sectors that saw notable growth included government (43,000), leisure and hospitality (42,000), and professional, scientific and technical services (32,000).
Construction at Toll Brothers Borello Ranch Estates residential community on Tuesday, June 4, 2024 in Morgan Hill, California. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
Click here to get FOX Business on the go
The report also showed small revisions to job gains so far this year. The government said job gains in March were revised down by a total of 5,000 to 310,000, and April’s job gains also fell slightly to 165,000.
This is a developing story, please check back for updates.
