The United States added about 440 thousand jobs in May, lifting the unemployment rate to 3.7 percent, a rise of three-tenths from April, according to the latest release from the Bureau of Labor Statistics (BLS).
In May, 339,000 positions were created, representing a net increase of 86,000 compared with April, when the impacts of Federal Reserve rate increases on the labor market were closely watched to curb inflation.
Unemployment ticked higher after two straight months of decline (March and April). The rate hikes appear to be cooling segments of the labor market.
The data show that among demographic groups, African Americans and women faced higher unemployment rates in May, at 5.6 percent and 3.3 percent respectively, while the overall job gains happened across sectors including services, health care, construction, transportation and warehousing, and outreach services. [Cite: BLS]
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Unemployment figures arrived as the economy showed signs of cooling after a measured 0.3 percent quarter-on-quarter growth from January through March, slightly below the pace recorded in late 2022. [Cite: Economic Data Center]
Earlier in the month, the Federal Reserve raised the policy rate by 0.25 percentage points, placing the target range at 5.0 to 5.25 percent, the highest level in about 15 years. The future path of rates remains under review as new economic data and other financial indicators are assessed in coming weeks. [Cite: Federal Reserve]