Actual employment is exceeding expectations

High interest rates, a recent banking crisis and Washington’s fight over the debt ceiling may have shaken the US economy recently, but the US jobs market continues to show signs of strength. The US Bureau of Labor Statistics (BLS) reported 339,000 jobs were added in May, surpassing forecasts that predicted the increase would be approximately 190,000 jobs and a sign of continued growth from the jobs market despite the Federal Reserve’s continuing efforts to cool the economy. Growth in the labor market has fluctuated over the last few months, dipping down to 165,000 jobs in March and coming back up to 253,000 jobs in April. The number of jobs added is still down compared with this time last year, when 390,000 jobs were added to the economy. Despite more jobs being added to the economy compared to the previous month, the unemployment rate in May went up 0.3% to 3.7%. The 3.4% unemployment rate in April was the lowest seen since 1969. The leisure and hospitality industry continued to add more jobs as the warmer weather has seen more people traveling and eating at restaurants. Construction, transportation and warehousing and social assistance also saw an increase in jobs this month. Reports from earlier in the week indicated that while growth is slowing, the labor market remains hot. The payroll company ADP’s report of private payrolls in May showed an increase of 278,000 jobs, surpassing forecasts of 180,000. BLS’s Job Openings and Labor Turnover Survey showed that job openings unexpectedly rose in April, from 9.7m openings in March to 10.1m openings in April.