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The U.S. economy created 559,000 jobs last month, with the unemployment rate falling to 5.8%, suggesting that the labor market has picked up some strength, fearing a labor shortage would delay the economic recovery.
The U.S. Department of Labor’s payroll data released on Friday was slightly worse than economists ’expectations of about 650,000 job gains, but a significant improvement from the 278,000 jobs released in April.
The figures were released at a crucial time for the U.S. economy, where growth was rapidly revealing thanks to pandemic cuts and high fiscal stimulus across the country. inflation.
Meanwhile, businesses have complained that they are trying to re-hire workers to meet the high demand, and have pushed for higher wages in an effort to attract new employees.
The April work report it was far from the expectations of economists and was below the pace of job creation in March, creating widespread fears labor shortage It could definitely hurt the U.S. economic recovery.
This weakness heightened its commitment to the May report, proving that the slowdown in recruitment in April was a temporary warning sign of a broader problem or a lasting phenomenon related to the virus, school closures and government. transfers would eventually be resolved.
May job report Federal Reserve they are preparing to open a debate to alleviate some of the massive monetary stimuli that have arisen in monetary evolution US economy since the beginning of the pandemic.
The central bank has been buying $ 120 billion in assets every month since last year, according to monetary policy officials. start talking “slowing down” that pace of bond purchases – even if they don’t say when they’ll start that process.
Improving job creation in May would also be convenient for the Biden administration, which is impressed put on defense due to the slowdown in April, Republicans questioned the effectiveness of its economic policies.
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