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.