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U.S. Adds 339k Jobs in May – DSJ Breakdown

Despite it being another month of raised interest rates and inflation, the month of May was still a productive month for the United States when it comes to adding jobs to the economy. Employers rejoiced during the month of May as nearly 340,000 jobs were added to the labor market that has been struggling to get back on track ever since the pandemic hit. Despite these jobs being added to the labor market, the nation actually saw an increase in the unemployment rate. Previously at 3.4%, the unemployment rate was the lowest it has been in decades. During the month of May, however, we saw this number rise to 3.7%, which is the highest it has been since October of 2022.

Labor Market Resilience

For about a year now, the Federal Reserve has been hiking up interest rates very aggressively to try and combat inflation. These aggressive rate hikes were expected to put a damper on hiring and wage growth, but this hasn’t worked as the U.S. labor market has been showing a lot of resilience during this tough time for the economy.

Wrap Up

During a meeting earlier this month, the Federal Reserve stated they were going to pause interest rate hikes after the last raise last month. However, after seeing a jobs report that is much better than expected, it is unknown if the Fed will decide to continue on its path of raising interest rates to tame job growth and ultimately combat inflation.

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