Non-agricultural employment in the US increased by 138 thousand in May while the unemployment fell to its lowest level in 16 years. The employment market in the US showed complex signals in May. The unemployment rate fell to 16 years. According to the US Department of Labor data, non-agricultural employment increased by 138 thousand in May. The unemployment rate dropped to 4.3% from 4.4%. Expectation was 4.4% of unemployment.
The employment rate in the US is below the expectation. Average hourly wages rose in line with expectations at 0.2 percent per month, while annual growth remained unchanged at 2.5 percent level. Labor force participation rate remained unchanged during this period, reaching 62.7%.
On the other hand, data for April employment was revised downward from 211 to 174. In May private sector employment increased by 147 thousand, while public employment decreased by 9 thousand. In the US, ADP private sector employment also increased by 253 thousand people in May, which exceeded the expectations of 180 thousand.
According to the economists the data would not be very alarming looking at the preliminary data. It is said that companies want to see more evidence of the new government’s economic plans, and therefore may be reluctant to expand the workforce. The economy is expected to leap in the first quarter of the year despite the expected low inflation, and the economy is approaching full employment. This situation also strengthens the expectation that the Fed will raise interest rates at the meeting on June 13-14.
The dollar fell against major currencies after the US employment data was released on the second day of June by the US Department of Labor. According to a statement made by the US Department of Labor, non-farm employment rose 138,000 in May, significantly below the 182,000 estimate of the experts in the Bloomberg survey.
The dollar, which returned the two-day gain against the yen after the release, was down sharply. The dollar / yen pair traded at 110.68, down 0.63 percent. The Euro / Dollar parity was 0.50% higher than the 1.1280 buyer.