At least jobs aren’t going down! Biden gets good news as the US added 339k to the workforce in May – beating economists’ expectations of 190k
- The unemployment rate remains near its lowest level in five decades
- Figures from the Department of Labor show the 14th job growth in a row
- Follows Thursday’s House-Senate debt settlement agreement
The US economy defied forecasts of a slowdown, adding a strong 339k jobs in May.
Figures released by the Bureau of Labor Statistics on Friday dashed economists’ expectations of the 190,000 new jobs that would be added.
It’s the 14th straight month that job creation has beaten Wall Street economists’ expectations.
The US unemployment rate rose to 3.7 percent, but is still close to the low unemployment levels of the late 1960s. In April, the rate hit its lowest level in half a century at 3.4 percent.
The economic news came as Dow futures rose after the Senate late Thursday night passed a debt-limit agreement that prevents a potential US default on its obligations as early as Monday’s “X-date.”
The US economy defied forecasts of a slowdown, adding a strong 339k jobs in May
The good news report builds on a string of monthly gains
President Biden welcomed this agreement in a statement Thursday evening.
“Nobody gets everything they want in one negotiation, but make no mistake: This bipartisan deal is a huge win for our economy and the American people,” Biden said in the statement. “It protects the cornerstones of my Investing in America agenda, which aims to create good jobs across the country, spur a manufacturing recovery, rebuild our infrastructure and advance clean energy,” he added.
The good business news comes hours after Biden stumbled while delivering diplomas at the opening of the Coast Guard Academy in Colorado.
President Joe Biden is helped to his feet after falling during graduation at the United States Air Force Academy in Colorado on Thursday. He fell while presenting diplomas to the cadets
In this image from Senate Television, the final 63-36 vote to pass the debt ceiling bill Thursday evening, June 1, 2023, in the Senate in the U.S. Capitol in Washington. President Joe Biden is expected to sign the bill aimed at preventing the default quickly
Senate Majority Leader Chuck Schumer said passing the bill means “America can breathe easy.”
He said: “We avoid payment defaults.”
Biden plans to conclude his week with a speech on avoiding defaults on Friday, followed by a parade at the Marine Barracks in Washington, DC
The job gains come despite a string of 10 straight rate hikes decided by the Federal Reserve Board. At the Fed’s May meeting, it raised its key interest rate to between 5 and 5.25 percent.
The job gain was an encouraging sign in an economy where home sales have been falling and suggests Americans are grappling with credit card debt amid high, albeit decelerating, inflation.