US Job Growth Hits 172000 in May as Labor Market Firms
The United States economy added 172,000 jobs in May while the unemployment rate held steady at 4.3 percent for the third consecutive month. This sustained growth provides the Federal Reserve with more flexibility to maintain current interest rates as officials monitor inflation risks stemming from Middle East tensions.
The United States economy added 172,000 jobs in May, marking a third consecutive month of growth that significantly exceeded economist forecasts of 85,000. Unemployment remained at 4.3% as the labor market absorbed 93,000 more jobs in March and April than previously estimated. These gains provide the Federal Reserve flexibility to maintain current interest rates despite rising energy-driven inflation.
Nonfarm payrolls rose 172,000 last month following an upwardly revised 179,000 increase in April. The Labor Department reported on Friday morning, June 5, that the economy needs only zero to 50,000 new jobs monthly to match population growth. This break-even rate fell after an immigration crackdown reduced the available labor force.
