According to data released today by the Bureau of Labor Statistics, total nonfarm payroll employment expanded by 172,000 jobs in May, well above market expectations for a gain of 88,000. March and April also saw a combined upward revision of 93,000 jobs. Leisure and hospitality led the job expansion (+70,000), followed by local government (+55,000), healthcare (+35,000) and social assistance (+12,000). The gains were partially offset by declines in financial activities (-22,000). The unemployment rate remained unchanged at 4.3%, meeting market expectations.
The ABA Office of the Chief Economist views this month’s job gains in conjunction with the revisions as evidence of a strengthening labor market that continues to grow despite price pressures. The latest job market strength should continue to support consumer loan demand and credit performance.
