The estimate of job growth in March was revised up from 85,000 to 119,000, while April's tally ticked down from 223,000 to 221,000 jobs added.
Signaling a rebound in overall growth and nudging the Federal Reserve toward its first interest-rate increase in nearly a decade, the U.S. economy gained 280,000 jobs in May, well above the monthly average logged over the last year. Meanwhile, the estimate of job growth in March was revised up from 85,000 to 119,000, while April's tally ticked down from 223,000 to 221,000 jobs added.
In addition to this, workers enjoyed solid wage gains in May. Average hourly earnings of private-sector workers rose 0.3% from the prior month. Earnings were up 2.3% in May from a year earlier, slightly better than the 2% annual pace of recent years and the strongest gain since August 2013.
The sectors with the biggest job gains were professional and business services, adding 63,000 net new jobs, and leisure and hospitality, which added 57,000 jobs. This was followed by health care industry, which generated 47,000 jobs.
However, the unemployment rate went up a notch to 5.5%, but the increase was due to a rise in the number of people entering the
workforce for the first time and looking for jobs. Nevertheless, a broader measure of unemployment, which includes part-time workers who
want full-time jobs and those too discouraged to even search, remained at 10.8 %, not much of a drop as estimated by most of the economists.
Thus, strong private reading of the labor market and falling unemployment claims bolster hopes for a solid jobs report on Friday. The return of stronger job growth is also likely to bolster the resolve of Federal Reserve officials who hope to start raising interest rates from their near-zero level later this year.
In addition to this, workers enjoyed solid wage gains in May. Average hourly earnings of private-sector workers rose 0.3% from the prior month. Earnings were up 2.3% in May from a year earlier, slightly better than the 2% annual pace of recent years and the strongest gain since August 2013.
The sectors with the biggest job gains were professional and business services, adding 63,000 net new jobs, and leisure and hospitality, which added 57,000 jobs. This was followed by health care industry, which generated 47,000 jobs.
However, the unemployment rate went up a notch to 5.5%, but the increase was due to a rise in the number of people entering the
workforce for the first time and looking for jobs. Nevertheless, a broader measure of unemployment, which includes part-time workers who
want full-time jobs and those too discouraged to even search, remained at 10.8 %, not much of a drop as estimated by most of the economists.
Thus, strong private reading of the labor market and falling unemployment claims bolster hopes for a solid jobs report on Friday. The return of stronger job growth is also likely to bolster the resolve of Federal Reserve officials who hope to start raising interest rates from their near-zero level later this year.
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