WASHINGTON–The latest jobs numbers again exceeded analysts’ expectations, with the Labor Department reporting total nonfarm U.S. jobs increased a seasonally adjusted 272,000 jobs in May.
That is a larger number than in April and well above the 190,000 that economists had been predicting. Average hourly earnings also topped forecasts, rising 4.1% from a year earlier, according to the report.
“The diffusion index surged from 56.6 to 63.4 over the month, indicating widespread hiring across various industries,” said America’s Credit Unions Senior Economist Dawit Kebede. “Average hourly earnings increased from 3.9 to 4.1, reversing the path towards a rate aligned with a 2% inflation target. The report alters the moderating signal observed in April, potentially extending the timeline of a Federal Reserve rate cut."
One Caveat
The only caveat in the robust hiring numbers was the unemployment rate, which was up slightly to 4% from 3.9% in April, the first time in two years it has been that high.
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