White House hails surge in hiring, low unemployment rate in May

U.S. gains 223,000 jobs in May, unemployment rate falls to 3.8 percent

U.S. gains 223,000 jobs in May, unemployment rate falls to 3.8 percent

USA employment has risen for 92 consecutive months, the longest jobs-expansion streak on record, while the current jobless rate in the US indicates a market with virtually full employment. Employers appear to be shrugging off recent concerns about global trade disputes. "Looking forward to seeing the employment numbers at 8:30 this morning", he tweeted. Early on in the administration, former press secretary Sean Spicer drew criticism for tweeting immediate reaction to a positive jobs report, violating the standard one hour time span.

"I think the expansion could go on for a number of years", he says. "Adult women and adult men recorded the lowest unemployment rates since 2000, at 3.3% and 3.5% respectively". Notably, the unemployment rate for African-Americans fell sharply to 5.9 percent in May, from 6.6 percent a month earlier.

The upward momentum on Wall Street comes on the heels of the release of a report from the Labor Department showing stronger than expected job growth in the month of May.

Investors welcomed the report. As such, the latest jobs numbers confirm that the labor market has tightened significantly, with manufacturers increasing employment by almost 19,000 per month on average since the end of 2016. The major index futures are now pointing to a higher open for the markets, with the Dow futures up by 122 points. "Overall, the report shouldn't signal any alarm to the (Federal Reserve), and we continue to expect the Fed to raise the fed funds rate one more time this year, after this month's [expected] hike". The Household Survey registered a 281,000 decline in unemployed - it has fallen 641,000 in the last three months. A relatively high net share of small businesses, 20 percent, plans to raise worker compensation in coming months. During the recession and recovery, that distinction was crucial: The official unemployment rate ignored millions of people who had abandoned their job searches as hopeless. Some economists calculate that higher gas costs could offset up to one-third of the benefit of the tax cuts. That's important because economists worry that people who are out of work for long periods can see their skills erode.

Swonk believes unemployment will bottom out at about 3.5% by the end of the year.


But the unrounded figure is 3.75 per cent, the lowest since December 1969. That lifted the annual increase in average hourly earnings to 2.7 percent from 2.6 percent in April.

Tony Fratto, a Treasury Department official who worked in George W. Bush's administration, said that while not illegal, Trump's tease could be deemed inappropriate because "you want market participants to get their data from their government in predictable, official ways, not haphazard ones". Retail was also a big gainer, adding 31,100 jobs, putting employment 25,100 above year-ago level.

Swonk said the great conundrum in the current economic environment was why wage growth had been so modest. The administration on Thursday imposed tariffs on steel and aluminum imports from key allies in Europe, Canada and Mexico. And Europe, Mexico, Canada and China have vowed to hit back at USA goods. But persistent uncertainty about which trading partners might be hit next - and which USA products might be penalized in retaliatory moves - could disrupt some companies' expansion plans.

For now, the solid hiring data coincides with other evidence that the economy is on firm footing after a brief slowdown in the first three months of the year. That means that even though lots of Americans were hunting for work, there were plenty of jobs available and fewer people languishing on the margins.

Still, consumer spending rose in April at its fastest pace in five months.

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