US unemployment rate at 3.7% for May

The unemployment rate in United States during May was at 3.7 per cent which was higher than the forecasts of 3.5 per cent, even though the labor force participation rate was unchanged. The jobless rate was the highest since October 2022.

Payrolls in the public and private sector increased by 339,000 for the month

Average hourly earnings, a key inflation indicator, rose 0.3 per cent for the month. On an annual basis, wages increased 4.3 per cent, which was 0.1 percentage point below the estimate. The average work week fell by 0.1 hour to 34.3 hours in US.

Professional and business services led job creation for the month with a net 64,000 new hires. Government helped boost the numbers with an addition of 56,000 jobs, while health care contributed 52,000.

Other notable gainers included leisure and hospitality (48,000), construction (25,000) and transportation and warehousing (24,000).

In May, construction added 25,000 jobs, including 11,000 jobs in heavy and civil engineering construction. Over the prior 12 months, construction had added an average of 17,000 jobs per month.

Employment in transportation and warehousing increased by 24,000 in May. Transit and ground passenger transportation added 12,000 jobs, offsetting a decrease in the prior month. In May, employment also increased in couriers and messengers (+8,000) and air transportation (+3,000).

In May, average hourly earnings for all employees on private nonfarm payrolls rose by 11 cent, or 0.3 per cent, to $33.44. Over the past 12 months, average hourly earnings have increased by 4.3 per cent. In May, average hourly earnings of private-sector production and nonsupervisory employees rose by 13 cents, or 0.5 per cent, to $28.75.

The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.3 hours in May. In manufacturing, the average workweek was unchanged at 40.1 hours, and overtime edged up by 0.1 hour to 3.0 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls remained at 33.8 hours.