09 June 2024

My Bad, I Missed This on Friday

Monthly Job Creation

Unemployment rate
As always, the first Friday of the month is when the DoL drops their employment report, and it was a banger, with with job growth of 272,000 as versus forecasts of 180,000 (50% over), with good wage growth.

The unemployment rate went up from 3.9% to 4.0%, but looking at the number, I think that this is largely because the donut (people entering) grew, and not that the hole (layoffs) grew.

Employers added 272,000 jobs in May, reflecting a booming labor market that continues to fuel the economy with workers benefiting from wages that are outpacing inflation.

But the unemployment rate ticked up to 4 percent, ending a 27-month stretch of historically low unemployment — the longest in 50 years.

Job creation accelerated from the previous month, rising above the average monthly level of growth so far this year, which was already strong, after a period of cooling for part of 2023.


Average hourly wage growth accelerated sharply in May, to $34.91, up 4.1 percent from the previous year. Wages have consistently beaten inflation for nearly a year, boosting American workers’ standard of living after years of wages falling behind inflation.

In a new milestone, 78 percent of women ages 25 to 54 had or were looking for jobs — the highest level since record keeping started in the 1950s. Higher wages and plentiful opportunities have enticed women into the workforce after the child-care crisis of the coronavirus pandemic pulled them onto the sidelines. Indeed, some of the largest job gains happened in sectors that tend to employ more women, including health care, government, and leisure and hospitality.

These are unambiguously good numbers.


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