US economy added 280,000 new jobs in May
In May the US economy added 280,000 new jobs, beating economists’ estimates.
According to Bloomberg, economists expected gains of 220,000.
Businesses added 262,000 jobs, while Federal, state and local governments added 18,000.
The leisure and hospitality sector gained 57,000 new jobs. The arts, entertainment and recreation sector gained 29,000. Retail added 31,000, and the construction sector gained 17,000.
Unemployment rate climbed up
Despite robust job growth, the US unemployment rate climbed up to 5.5 percent from 5.4 percent, according to the latest Labor Department report.
However, the increase was mainly due to the fact that more people, including new college graduates, entered the labor force.
The Bureau of Labor Statistics said that 397,000 more people entered the labor force.
The labor force participation rate rose 0.1 percent to a four month high of 62.9 percent.
Unemployment claims dropped
On Thursday the Labor Department said that unemployment claims had dropped 8,000 to a seasonally adjusted 276,000, an indication that employers are more confident in retaining workers.
Reports suggest the US economy is regaining momentum
The Associated Press said that the robust job growth in May “suggests that employers remained confident enough to keep hiring even after the economy shrank during the first three months of the year. The government also revised up its estimate of job growth in March and April by a combined net 32,000.”
In a note to clients, Paul Ashworth, chief US economist at Capital Economics, wrote that Friday’s payroll report “adds to the evidence that the US economy is regaining momentum after another winter slowdown.”