#USLaborMarket #JobGrowth2024 #EconomicImpact
Here's where the jobs are for May 2024 — in one chart
The U.S. labor market defied expectations with a robust addition of 272,000 jobs in May, surpassing the Dow Jones consensus estimate of 190,000 and the 12-month average of 232,000. This growth was led by the health care, government, and hospitality sectors, which collectively contributed over 50% of the month's total job gains. Health care added 68,000 jobs, government 43,000, and hospitality 42,000. The health-care and social assistance sector alone accounted for over 83,000 jobs in May.
The professional, scientific, and technical services sector also experienced a notable increase, adding 32,000 jobs during the month, which is higher than the average monthly gain of 19,000 over the past 12 months. Conversely, social assistance employment saw a below-average increase of 15,000 jobs last month, while department stores and furniture and home furnishings retailers reported job losses.
Major industries, including oil and gas extraction, construction, manufacturing, information, and financial activities, experienced little to no change in employment levels. The unexpectedly strong job growth and above-average wage growth have left investors questioning the need for the Federal Reserve to cut interest rates in June. Sonu Varghese, global macro strategist at Carson Group, commented, "As has been the case recently, job growth was driven by non-cyclical areas like health care and government, but cyclical areas like leisure and hospitality were strong. This is likely to keep the Fed in a holding pattern, with the first cut likely coming only in September, assuming we continue to see softer inflation."
The U.S. Bureau of Labor Statistics reported that the unemployment rate remained steady at 3.6%, and average hourly earnings rose by 0.3% month-over-month, marking an annual increase of 3.1%.
Perspective
The comments section highlights the significance of this job growth for the economy and the potential impact on interest rates. Many investors are now questioning the need for the Federal Reserve to cut interest rates in June, given the strong job growth and above-average wage growth.
Data
- The health-care and social assistance sector alone accounted for over 83,000 jobs in May, indicating a significant shift towards these sectors.
- The professional, scientific, and technical services sector added 32,000 jobs during the month, higher than the average monthly gain of 19,000 over the past 12 months.
- The unemployment rate remained steady at 3.6%, and average hourly earnings rose by 0.3% month-over-month, marking an annual increase of 3.1%.
Original Article: https://www.cnbc.com/2024/06/07/heres-where-the-jobs-are-for-may-2024-in-one-chart.html
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