A worker manipulates a cask of molten iron during cookware production at the Lodge Manufacturing Co. factory in South Pittsburg, Tennessee, March 7, 2022.
Luke Sharrett | Bloomberg | Getty Images
The U.S. economy added 390,000 jobs in May, better than expected despite fears of an economic slowdown and with a roaring pace of inflation, the Bureau of Labor Statistics reported Friday.
At the same time, the unemployment rate held at 3.6%, just above the lowest level since December 1969.
Economists surveyed by Dow Jones had been looking for nonfarm payrolls to expand by 328,000 and the unemployment rate to edge lower to 3.5%.
Average hourly earnings increased 0.3% from April, slightly lower than the 0.4% estimate. The year-over-year increase for wages of 5.2% was in line with expectations.
Stock market futures were volatile and pointed to a lower open on Wall Street following the report. Government bond yields moved higher.
Job gains were broad-based. Leisure and hospitality led, adding 84,000 positions. Professional and business services rose by 75,000, transportation and warehousing contributed 47,000, and construction jobs increased by 36,000.
Other areas that saw notable gains included state government education (36,000), private education (33,000), health care (28,000), manufacturing (18,000) and wholesale trade (14,000).
Retail trade took a hit on the month, however, losing 61,000 in May, though the BLS noted that the sector remains 159,000 above its February 2020 pre-pandemic level.
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