The US labor market just did something Wall Street didn’t see coming. The Bureau of Labor Statistics reported on June 5 that the economy added 172,000 jobs in May, roughly double what economists had penciled in.
Pre-report expectations sat in the range of 80,000 to 88,000 new jobs. Meanwhile, the Federal Reserve held its benchmark interest rate steady at 3.5%-3.75%, and this jobs print makes it abundantly clear why the central bank isn’t in any hurry to cut.
Where the jobs landed
The hiring wasn’t spread evenly across the economy. Leisure and hospitality, think restaurants, bars, and hotels, accounted for a significant chunk of the gains. Local government and healthcare also pulled considerable weight.
The unemployment rate held flat at 4.3%, unchanged from recent months. Revisions to March and April data also painted a stronger picture than initially reported, suggesting the labor market has been more resilient than the headline numbers previously indicated.
