The U.S. Department of Labor released its monthly Employment Report for May, revealing that 272,000 new jobs were added last month, exceeding Wall Street's forecast of 182,000 and April's gain of 165,000 [b072a649]. The health, government, entertainment, and hospitality sectors have created the most employment opportunities in the United States in May [b062c088]. The health sector saw the most growth, with outpatient health services adding 43,000 positions, hospitals adding 15,000 positions, and the nursing sector adding 11,000 positions [b062c088]. The government sector added 43,000 new jobs [b062c088]. The entertainment and hospitality sectors added 42,000 positions [b062c088]. The field of science also saw an increase of 32,000 new jobs [b062c088]. Three sectors accounted for more than half of the job growth in May. These sectors include [545618be]:
1. Leisure and Hospitality: This sector added 292,000 jobs, with the majority of the growth occurring in food services and drinking places. This surge in hiring is likely due to the easing of COVID-19 restrictions and the reopening of restaurants, bars, and entertainment venues.
2. Education and Health Services: This sector added 87,000 jobs, primarily in healthcare and social assistance. The demand for healthcare workers has increased as the pandemic continues, and there is a need for more healthcare professionals to support vaccination efforts and provide care to COVID-19 patients.
3. Professional and Business Services: This sector added 72,000 jobs, with the majority of the growth occurring in administrative and support services. As businesses continue to recover from the pandemic, there is a need for support staff to handle administrative tasks and provide services such as janitorial, landscaping, and security services.
These three sectors combined accounted for 451,000 jobs, representing over half of the total job growth in May. The strong performance of these sectors indicates a positive trend in the labor market and reflects the ongoing recovery of the U.S. economy [545618be][b072a649].
The rise in the unemployment rate to 4% comes amid solid job growth, with 272,000 new jobs added in May, exceeding expectations. This positive job growth indicates a strong labor market [b072a649].
The increase in the unemployment rate suggests potential challenges in the labor market and could impact the Federal Reserve's decision-making regarding interest rate cuts. Strong employment data indicates that the Federal Reserve may have a difficult time deciding about interest rate cuts [a127f1db].
In addition to the rise in jobless claims, other labor market indicators showed mixed results. U.S. job openings in April fell more than expected, and the number of available jobs per job-seeker reached its lowest level since June 2021. This indicates potential challenges in the job market and could impact the overall labor market outlook [2ff82132].
Furthermore, U.S. worker productivity grew slightly less than previously estimated in the first quarter but exceeded market expectations. Nonfarm productivity increased at a 0.2% annualized rate in the first quarter, and unit labor costs rose at a 4.0% annualized rate. These figures suggest that while productivity is growing, labor costs are also increasing, which could have implications for businesses and the overall economy [2ff82132].
Lastly, the U.S. trade deficit widened in April as a jump in imports outpaced a slight increase in exports. The trade deficit increased by 8.7% to $74.6 billion. This indicates potential challenges in the trade sector and could impact the overall economic growth [2ff82132].
The drop in overall consumer sentiment suggests that inflationary pressures are starting to weigh on consumer confidence, which could have implications for consumer spending and economic growth. The decline in consumer sentiment may also have implications for inflation, the stock market, and the upcoming election. The economy and inflation are top concerns for voters this election year [5b8d72a1].
The number of Americans filing new claims for unemployment benefits rose for the second consecutive week, exceeding expectations. According to the latest report from Investing.com Canada, initial jobless claims for the week ending June 1 increased by 8,000 to a seasonally adjusted 229,000. This figure was higher than the expected 216,000 and the previous week's 221,000 [a6124131][7d75a7c6]. However, the four-week moving average decreased slightly to 222,250 from the prior week's average of 223,000 [f98ef4f5][a6124131]. Continuing claims also saw a slight increase, rising to 1.792 million from the previous week's 1.790 million. The advance seasonally adjusted insured unemployment rate remained unchanged at 1.2% for the week ending May 25 [f98ef4f5][a127f1db].
A record 974,000 people in Australia had more than one job in March 2024, equivalent to about 6.7% of total employment [5e35995d]. The greatest numbers of people with second jobs were in service sector positions such as healthcare, aged care, disability services, retail, and hospitality [5e35995d]. Rising interest rates, cost-of-living pressures, declining real wages, the rise of the gig economy, and a historically tight jobs market have contributed to the increase in multiple jobholders [5e35995d]. Women are more likely than men to have a second job [5e35995d]. Victoria had the highest number of people with multiple jobs, followed by NSW and Queensland [5e35995d]. The proportion of people working multiple jobs in Australia is now challenging that of the United States [5e35995d]. Holding multiple jobs is a way for people to do more hours of work, especially when the labor market is strong [5e35995d]. A survey commissioned by Amazon Australia found that nearly 48% of Australians were considering taking on a second job within the next six months, with workers looking for an extra $350 per week on average [5e35995d]. The cost of living, declining real wages, and financial pressure were cited as reasons for working multiple jobs [5e35995d].