The US economy added 172,000 nonfarm payroll jobs in May, nearly doubling the 85,000 to 88,000 that economists had penciled in. The Bureau of Labor Statistics released the data on June 5, and the message was clear: the labor market isn’t cracking.
The unemployment rate held steady at 4.3%, while prior months got even rosier in hindsight. March and April job figures were revised upward by a combined 93,000 positions.
The numbers beneath the numbers
Leisure and hospitality drove a significant chunk of the gains. Think hotels, restaurants, and entertainment venues continuing to staff up. Financial activities, on the other hand, actually shed jobs.
Low hiring rates and rising long-term unemployment are lurking beneath the surface. The economy is adding jobs, yes, but the people who’ve been out of work for extended periods are finding it harder to get back in.
