The U.S. labor market remained hot in May, even as tighter monetary conditions and persistent inflation stoke worries of an economic slowdown.
The economy created 390,000 news jobs last month with the unemployment rate holding steady at 3.6%.
Here are the key numbers from the Labor Department's latest report compared to consensus estimates compiled by Bloomberg:
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Nonfarm payrolls: +390,000 vs. +318,000 expected and a revised +436,000 in April
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Unemployment rate: 3.6% vs. 3.5% expected and 3.6% in April
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Average hourly earnings, month-over-month: +0.3% vs. +0.4% expected and +0.3% in April
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Average hourly earnings, year-over-year: +5.2% vs. +5.2% expected and +5.5% in April
The latest data reflects a slightly slower pace of hiring from April, which saw payrolls rise by a revised 436,000. Over the last three months job gains have now averaged 408,000; in the three-month period ended in April, nonfarm payroll growth averaged 516,000.
Although growth slightly abated in May, overall job growth remains robust on a historical basis. Throughout 2019, for instance, payroll growth averaged about 164,000 per month.
Prior to the May report, the U.S. economy had added at least 400,000 jobs each month over the last year, bringing employment within 1% of pre-pandemic levels.
May’s jobs report also came as investors look for signs of continued economic momentum amid mounting worries over rising costs and the specter of recession.
"Another month of solid job growth in May is further evidence that the U.S. economy was not in a recession in the spring," Comerica Chief Economist Bill Adams said in a note. "Americans continue to return to the labor force as the rising cost of living pressures household finances."
At the industry level, employment in the retail sector notably softened in May, falling by 61,000 with job losses primarily across general merchandise stores, clothing, and clothing accessories stores. The declines coincide with some recent earnings reports from some big-name retailers that suggested hiring may cool as companies grapple with rising costs due to inflation. Overall employment in the retail industry, however, remains 159,000 jobs above its February 2020 level.
Services-based employers again led gains in May, with companies rushing hire back workers let go during the pandemic to meet renewed demand as consumers return to in-person activities, with notable hiring across restaurants and accommodations. Employment in the leisure and hospitality industry increased by 84,000, rising from 78,000 in April. This growth was the largest among any industry in May.