US Labour Market Added 172,000 Jobs In May, Unemployment At 4.3%

The unemployment rate in the US remained steady at 4.3% in the month of May, according to new data. The country's labour market continues to remain resilient amid rising inflation and economic uncertainty.

Job growth rose unexpectedly in May, the Bureau of Labor Statistics reported on Friday, with employers adding 172,000 jobs in May.

The report was the first monthly jobs data released under Kevin Warsh, the new chair of the Federal Reserve appointed by Trump in January. He assumed his post last month.

Economists earlier predicted about 80,000 new jobs and a stable unemployment rate of 4.3%. Job figures for March and April were revised up by 29,000 and 64,000, respectively, The Guardian reported. This was a boost of 93,000 compared to initial figures.

In terms of sectors, leisure and hospitality added 70,000 jobs, much more than the 14,000 monthly average over the past year. Employment in local government increased by 55,000. Social assistance added 12,000 hires.

Healthcare contributed 35,000 new jobs, about in line with its average, as per CNBC.

Average hourly earnings rose 0.3% for the month, and increased 3.4% over the past year. Both were in line with Wall Street estimates.

The data by the Bureau of Labor Statistics is the latest in a series of reports that have highlighted strong hiring in recent months, despite an uptick in inflation and the economic uncertainty due to the US-Iran war.

The department stated earlier this week that the job openings in April jumped to 7.6 million, while the number of workers discharged, quitting and laid off changed little.

The above-expected jobs data is likely to deter Federal Reserve officials from lowering interest rates.

The Fed will make its next interest rate decision on June 17.

The central bank usually cuts rates in response to a weak labour market, which can lead to higher prices, but also can boost the economy. A hike in the interest rates risks higher unemployment, but would lower spending and inflation.

Economists believe that the Fed will hold rates steady at its meeting, as per reports. However, Trump and his advisers expect Warsh to be receptive to their calls for rate cuts.

Even if Warsh supports a rate cut, it is unlikely that a majority of the central bank's 12 voting members would give their nod to the policy decision. At the Fed's last meeting in April, only one member voted for lowering the target range for interest rates.