Hiring is rising as the US adds 339,000 jobs in May
At least no jobs are falling! Biden gets good news: US adds 339,000 new jobs to workforce in May, crushing economists’ expectations of 190,000
- The unemployment rate remains near its lowest point in five decades
- Labor Department figures show the 14th consecutive job growth
- Thursday follows the agreement on the debt settlement of the House and Senate
The US economy defied forecasts of a slowdown in growth and added 339,000 new jobs in May.
Figures released Friday by the Bureau of Labor Statistics shattered economists’ expectations about the 190,000 new jobs that would be added.
It is the 14th month in a row that job creation exceeded Wall Street economists’ expectations.
The unemployment rate in the US rose to 3.7 percent, but remains close to the low unemployment level of the late 1960s. The rate hit a half-century low of 3.4 percent in April.
The economic news came as Dow futures moved up after the Senate’s late night action Thursday to approve a debt limit deal that avoids a potential default by the US on Monday’s “X date.”
The US economy defied forecasts of a slowdown in growth and added 339,000 new jobs in May
The good news report builds on a series of monthly gains
Biden applauded the economic news in a statement.
Today is a good day for the American economy and American workers. We learned this morning that the economy created 339,000 jobs last month,” he said. “Since I took office, we have now created more than 13 million jobs. That’s more jobs in 28 months than any president has created in an entire 4-year term.”
He continued, “We also learned that the unemployment rate has been below 4 percent for 16 months in a row. The last time our country experienced such a long period of low unemployment was in the 1960s. And the share of working-age Americans in the workforce is at its highest level in 16 years. Meanwhile, annual inflation has fallen for 10 months in a row and by more than 40 percent since last summer. In that time, net wages for employees have increased, even after factoring in inflation.’
Biden’s cheerful remarks came hours after him praised that agreement in a statement Thursday night.
“No one gets everything they want in a negotiation, but make no mistake: This bipartisan deal is a great victory for our economy and the American people,” Biden said in the statement. “It protects the core pillars of my Investing in America agenda: creating good jobs across the country, fueling a manufacturing resurgence, rebuilding our infrastructure and advancing clean energy,” he added.
The good economic news comes hours after Biden stumbled while handing out diplomas at the start of the Coast Guard Academy in Colorado.
President Joe Biden is helped Thursday after a fall during the graduation ceremony at the United States Air Force Academy in Colorado. He fell while handing out diplomas to cadets
In this image from Senate Television, the final vote of 63-36 shows the passage of the bill to raise the debt ceiling in the Senate at the Capitol in Washington on Thursday night, June 1, 2023. President Joe Biden is expected to quickly sign the bill that will prevent default
Senate Majority Leader Chuck Schumer said passing the bill means “America can breathe a sigh of relief.”
He said, “We avoid non-payment.”
Biden plans to end his week with a speech about avoiding default on Friday, then attend a parade at Marine Barracks in Washington, D.C.
The job gains come despite a series of 10 consecutive rate hikes approved by the Federal Reserve Board. At the Fed’s meeting in May, it raised the benchmark federal funds rate to between 5 percent and 5.25 percent.
The job gains offered a promising signal in an economy that has seen a decline in home sales, and indications that Americans are struggling with credit card debt amid high, though falling, inflation.