U.S. Labor Market Shows Resilience with Third Consecutive Month of Job Growth

The labor market is finding its footing. U.S. employers added jobs for the third month in a row in May, according to a report Friday from the Labor Department. Job gains for March and April were also revised significantly higher. Restaurants and bars added 48,000 jobs last month in anticipation of strong summer demand, while the overall hospitality industry added 70,000 jobs. Construction companies and local governments were also hiring. Healthcare, which has been a steady source of employment gains, added another 35,000 jobs. Banks and insurance companies, meanwhile, cut jobs. The financial sector overall cut 22,000 jobs in May. Overall, the report shows hiring has picked up steam this spring after anemic job growth last year. Over the last three months, employers have added an average of 188,000 jobs each month. Meanwhile, the workforce grew slightly in May as 83,000 people began working or looking for work, while the unemployment rate held steady at 4.3%. Despite the uptick in hiring, employers are not having to offer big wage increases to attract workers. Average wages in May were up just 3.4% from a year ago. That's likely not enough to keep pace with inflation — with prices for the 12 months ending in April up 3.8%. Prices have been rising rapidly since the U.S. launched its war with Iran just over three months ago. And now, with signs that the job market is stabilizing, the Federal Reserve, under new chair Kevin Warsh, is likely to focus its attention on getting inflation under control. That makes it unlikely the central bank will cut interest rates any time soon, despite pressure to do so from President Trump. The Labor Department is set to report on May inflation next week, providing Fed policymakers with another key data point ahead of its next policy meeting in mid-June.