United States’ 559,000 Job Growth in May Short of Potential, Says Analyst

The United States job growth picked up in May but was not enough to meet market expectations, Bloomberg reported.

• Payrolls grew by 559,000 in May, short of the 675,000 market consensus. This also compares with the 278,000 gain in April.
• The unemployment rate fell to 5.8%, while the labor force participation rate was little changed at 61.% from the previous month’s 61.7%.
• Bank of America U.S. Economics Head Michelle Mayer said the latest reading was strong but could have been stronger given the state of the economy.
• Mayer attributed the failure to meet market consensus on supply constraints and labor shortages.
• With the latest reading, the U.S. labor market is still 7.6 million jobs below pre-pandemic levels as firms report hiring difficulties amid high demand.
• The Labor Department said data from the past two months indicates that the rising demand for labor linked to the recovery from COVID-19 may have pushed wages higher.