The US economy continued to create many new jobs in May according to the country’s latest employment report, despite Donald Trump’s concern for steel and car manufacturing workers.
The Bureau of Labour Statistics reported that there were 223,000 net new jobs in the month and that the jobless rate declined again to 3.8 per cent, its lowest level since April 2000.
The reading was better than the 188,000 increase in non-farm payroll pencilled in by Wall Street analysts.
The BLS singled out retail, health care and construction as sectors which saw decent growth.
The labour force participation rate was stable at 62.7 per cent.
Average earnings growth was 2.7 per cent, up from 2.6 per cent in April.
“The job numbers are very strong, widespread, or broad-based, that was an indication of strength from the report. The really good news for markets is the average hourly earnings continues to be very steady and does not signal a buildup in inflationary pressures, so overall a very solid report,” said Michael Arone of State Street Global Advisors.
Analysts said the figures increased the likelihood of a June interest rate hike by the US central bank, the Federal Reserve.
Lowest since April 2000
The Trump administration imposed tariffs on steel and aluminium imports from the European Union, Mexico and Canada on Friday, claiming that they posed a “national security” threat because of the negative impact on US industry.
“Trade wars could be damaging but, in a relatively closed economy where exports account for only 12 per cent of GDP, things would have to get a lot worse for the White House’s protectionist sideshow to alter the interest rate outlook,” said Paul Ashworth of Capital Economics.
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