Private U.S. companies saw another month of better-than-expected job growth in May, despite the Federal Reserve's aggressive efforts to fight inflation.
last month, easily beating the 170,000 gain that economists surveyed by Refinitiv predicted. It is slightly below the revised 291,000 figure recorded last month.wages the most aggressive fight since the 1980s to crush inflation and slow the labor market with a series of rapid interest rate increases. Fed policymakers have made it clear that they anticipate unemployment to climb as a result of higher borrowing costs, which could force consumers and businesses to pull back on spending.
A general view shows construction workers standing before the Manhattan skyline and Empire State Building in New York City on Jan. 24, 2023., wages cooled at a faster pace in May. Annual pay rose 6.5% in May down from 6.7% in April, according to the report. For workers who switched jobs, wages climbed 12.1%, down a full percentage point from the previous month.
"This is the second month we've seen a full percentage point decline in pay growth for job changers," said Nela Richardson, chief economist at ADP. "Pay growth is slowing substantially, and wage-driven inflation may be less of a concern for the economy despite robust hiring.
A"Now Hiring" sign is seen outside a job fair at a Schneider Electric manufacturing facility in Hopkins, South Carolina, on Jan. 18, 2023. The biggest losses, meanwhile, were concentrated in the manufacturing sector, which saw payrolls tumble by 48,000. Financial activities also shed 35,000 positions, while education and health services cut 29,000.
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