#USJobMarket #EconomicGrowth #FederalReserve
The U.S. job market surprised analysts by adding a robust 272,000 jobs in May 2024, surpassing the Dow Jones consensus estimate of 190,000 and exceeding the average monthly gain of 232,000 over the past year. This strong job growth was led by the health care, government, and hospitality sectors, which accounted for over 50% of the total gains. Health care added 68,000 jobs, followed by government with 43,000 and hospitality with 42,000. The combined health-care and social assistance sector netted more than 83,000 jobs in May.
The professional, scientific, and technical services sector also posted impressive gains, adding 32,000 jobs during the month, higher than the average monthly gain of 19,000 over the past 12 months. However, social assistance employment saw a below-average increase of 15,000 jobs last month, while department stores and furniture and home furnishings retailers experienced job losses.
Other major industries, including oil and gas extraction, construction, manufacturing, information, and financial activities, showed little or no change in employment.
The unexpectedly strong job growth and above-average wage growth in May 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 employment in professional and business services, education and health services, and leisure and hospitality industries have shown consistent growth over the past year. Meanwhile, employment in manufacturing, construction, and information industries has remained relatively stable.
The strong May job growth report has alleviated concerns about a broader economic slowdown and may influence the Federal Reserve's decision to cut interest rates.
Perspective
The comments section highlighted the significance of the jobs report for the economy and the Federal Reserve's interest rate decisions. Many users expressed optimism about the job market's resilience and the potential for continued growth. Some also noted the importance of considering the broader economic implications of the report.
Data
- The U.S. economy has added an average of 232,000 jobs per month over the past year, indicating a strong labor market.
- The health care and social assistance sector has consistently been a major contributor to job growth, adding over 83,000 jobs in May 2024.
- The Federal Reserve's interest rate decisions are closely tied to job growth and inflation, with a strong jobs report potentially delaying rate cuts.
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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