U.S. Adds 75,000 Jobs, Unemployment Stays at 3.6% | NTK Network U.S. Adds 75,000 Jobs, Unemployment Stays at 3.6%

U.S. Adds 75,000 Jobs, Unemployment Stays at 3.6%

The total number of jobs added in May fell short of estimates, but unemployment remained at a near 50-year low.

By NTK Staff | 06.07.2019 @9:16am
U.S. Adds 75,000 Jobs, Unemployment Stays at 3.6%

The U.S. economy added 75,000 jobs during the month of May, according to the latest month report from the Bureau of Labor Statistics. That figure is far short of the 175,000 jobs experts expected to be added last month.

However, the unemployment rate remained steady at 3.6 percent, unchanged from the month of April and the lowest rate since December 1969.

While the job growth did not match experts’ expectation, analysts predicted a slower quarter for growth after the first quarter of 2019 saw a 3.1-percent growth rate.

The slower job growth and trade wars with China and Mexico is prompting the Federal Reserve to keep a close eye on the markets to determine interest rates.

On Tuesday, Jerome H. Powell, the central bank’s chairman, hinted that policymakers were prepared to cut rates if the trade war hurt the economy.

Until relatively recently, the expectation was that the Fed would continue raising its benchmark interest rate, something it started doing in December 2015. The Fed changed course in January, with Mr. Powell suggesting that very modest inflation and weakness in Europe and China warranted a neutral stance.

There are positive signs of growth in the economy, however. According to the New York Times, small business growth, defined by those businesses with 50 employees or fewer, is up 22 percent from last year.

“If you are looking for sectors that would slow hiring because of uncertainty today, it would be large employers,” said Andrew Chamberlain, chief economist at Glassdoor. “Small companies are doing business locally.”

With unemployment as low as it is, some employers are saying it’s difficult to find new workers.

“It’s a very competitive market,” one recruiter told the Times.

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