The United States Bureau of Labor Statistics announced this Friday that the unemployment rate in the main economic power on the planet rose one tenth in May compared to April, reaching 4 percent, the highest figure since January 2022. Despite To this end, job creation was stronger than experts expected.
According to the figures, in May there was a recovery in the net creation of new jobs to 272,000, about 107,000 more than those generated a month before. This figure is higher than the 232,000 monthly jobs created on average in the last 12 months, a result that continues to sustain the strength of the US labor market.
With the Federal Reserve’s benchmark interest rates at two-decade highs in an attempt to make credit more expensive and thus discourage consumption and investment to reduce pressure on prices, the employment data is not necessarily good news. In fact, in a first reaction, the New York stock market fell at the opening on Friday, because the market interprets that the possibility of an interest rate cut by the Federal Reserve is receding.
More spending, more inflation
Employment continued to trend upward in several industries, led by healthcare, government, leisure and hospitality, and professional, scientific and technical services. The number of unemployed stood at 6.6 million in May. Just one year ago, the unemployment rate was 3.7 percent and the number of unemployed was 6.1 million.
A more dynamic labor market “will help keep inflation buoyant and delay the Fed’s (interest rate) cuts until later this year or next year,” Nationwide chief economist Kathy Bostjancic told AFP. It also allows consumers to continue spending despite expensive credit, an element that puts upward pressure on prices.
New inflation data will also be released next week. The last ones known are those corresponding to the month of April, when the rate fell one tenth to 3.4 percent, after two months of consecutive increases. Source: news
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2024-06-10 13:45:33