Data released by the U.S. Department of Labor on Friday (7th) showed that non-farm employment increased by 272,000 in May, far exceeding market expectations of 182,000. The previous value was significantly revised down from 175,000 to 165,000. The better-than-expected figures, coupled with accelerating wage growth, showed strong employment despite rising unemployment, and the market lowered expectations for the Federal Reserve (Fed) to cut interest rates this year.
Specifically, the U.S. nonfarm unemployment rate rose to 4.0% in May, higher than market expectations and the previous value of 3.9%. Although the unemployment rate rose, the labor force participation rate remained unchanged at 62.7% for the month, in line with economists' expectations.
U.S. May nonfarm payrolls report:
Non-agricultural employment growth reported 272,000, compared with the expected 1.7 million, and the revised previous value of 165,000
Unemployment rate reported at 4.0%, expected 3.9%, previous value 3.9%
Average weekly working hours: 34.3 hours, expected 34.3 hours, previous value 34.3 hours
Average hourly wage annual growth rate reported at 4.1%, expected 3.9%, revised previous value of 4.0%
Average hourly wage growth was reported at 0.4% month-on-month, compared with expectations of 0.3% and the previous value of 0.2%
The labor force participation rate reported 62.5%, expected 62.7%, and the previous value 62.7%
