Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

The U.S. labor market remains red-hot as 339,000 new jobs were added in May, the 29th straight month of strong job growth.

The unemployment rate increased to 3.7% from 3.4%, primarily as the result of temporary jobs ending with some additional residual net increase resulting from the 200,000 tech layoffs.

The interest-sensitive construction industry defied expectations and continued to add 25,000 jobs in May.

Average hourly wage growth slowed, rising 0.3 percent between April and May, up to $33.44 an hour which the Federal Reserve has closely monitored wage growth as a gauge of whether the economy has cooled enough to control inflation. Wage growth remains highest among the lowest paid jobs while wages overall are falling behind inflation.

Adults in their prime working age of between 25 and 54 are back in the workforce at the highest rate since 2007 while adult women in their prime working age were employed at a high rate not seen since 2003.

But total Labor Force participation is still 0.7% below pre-pandemic levels as many Americans aged 55 and older have apparently dropped out of the workforce permanently owing to strong investment gains, leaving the economy short of workers.

Many remain hopeful that significant cuts in Medicare and Social Security benefits may yet drive increased labor force participation among Americans over the age of 55.