The Payroll report released this Friday (2) by the US Department of Labor revealed numbers positive for the country's labor market. According to the data, 339 jobs were created outside the agricultural sector in May, exceeding economists' expectations.
These results show the continued strength of the US economy, despite a slight increase in the unemployment rate. Higher-than-expected job creation could even influence the Federal Reserve's monetary policy, with the possibility of raising interest rates at the next meeting in June at the June 13-14 meeting.
Data released by the Bureau of Labor Statistics showed that the US economy remains in good shape, with the creation of 339 non-farm jobs in May. That mark is the 14th consecutive year that job creation has exceeded Wall Street's expectations. Economists had forecast an increase of 195 non-farm jobs for the month, while the jobless rate was expected to hold at 3,5%. However, the unemployment rate stood at 3,7%, indicating an increase of 440 unemployed, totaling 6,1 million unemployed people.
Another key indicator is average hourly earnings, which increased 0,3% in May, reaching $33,44 for employees on non-farm private payrolls. In the accumulated of the last 12 months, the average earning per hour showed an increase of 4,3%. This data is closely monitored by the Federal Reserve to assess the strength of the labor market, excluding the primary sector.
It is important to point out that, despite the still strong salary growth, there was a deceleration in relation to the previous month, which registered a growth of 4,4%. However, employment data for the past two months has been revised upwards, showing that 294 more jobs have been created than previously reported. Additionally, March job gains were also revised upwards, totaling 217 jobs created during that two-month period.
These results could influence the next Federal Reserve meeting in June, where it is possible that interest rates will be raised.
