- US job growth in May was way stronger than the forecast.
- Nonfarm payrolls increased by 272,000.
- The US unemployment rate is no longer below 4%.
Following data published Tuesday showing job openings cooled in April, data released on Friday showed how job growth and unemployment looked for the US in May.
A news release from the Bureau of Labor Statistics said nonfarm payroll employment rose by 272,000. The forecast per Investing.com was 182,000. April’s increase was revised from 175,000 to 165,000. March’s increase was revised from 315,000 to 310,000, as noted in the news release.
Plus, the US unemployment rate was 4.0% in May, greater than the expected rate of 3.9%. The previous rate was 3.9%.
The jobs report published on Friday comes before the next Federal Open Market Committee meeting. It's expected the target rate will be unchanged, as seen by the CME FedWatch Tool.
"Over the past year, as labor market tightness has eased and inflation has declined, the risks to achieving our employment and inflation goals have moved toward better balance," Fed Chair Jerome Powell said at a FOMC press conference in May. "The economic outlook is uncertain, however, and we remain highly attentive to inflation risks."
While US inflation has continued to be elevated, it's not as hot as it once was. The consistently low unemployment rate is one of several economic indicators that the US is avoiding a recession. Additionally, some recent data points to a soft landing.
"For many Americans, the difference between a soft landing and a more turbulent slowdown is their job," Nick Bunker, the economic research director for North America at the Indeed Hiring Lab, told Business Insider earlier this week.
This is a developing story. Please check back for updates.
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