U.S. Adds 272,000 Jobs In May, Beating Expectations; Entertainment Industry Employment Largely Unchanged

The U.S. added 272,000 jobs in May, beating expectations, while the unemployment rate rose slightly to 4%.

The figures from the Bureau of Labor Statistics show a continued robust labor market in spite of signs of a more significant slowdown elsewhere.

The big gains were in health care, government,; leisure and hospitality and professional, scientific, and technical services.

Average hourly earnings increased by 14 cents, or 0.4 %, to $34.91. Over the past year, average hourly earnings have increased by 4.1 %.

Employment in movies and music was 441,900, up slightly from the previous month. Jobs in publishing also grew slightly to 933,000. Employment among broadcasting and among content providers was 340,400, a slight drop from April.

The continued robust employment situation has been one factor in the Federal Reserve’s decision to put off an interest rate cut, as it seeks to tame inflation. But economists have been pointing to some signs of a hiring slowdown in recent months.

Harvard Professor Jason Furman, the chairman of the Council of Economic Advisers, wrote on X, “Overall the unemployment rate is enough to make one a bit nervous, especially since it is a somewhat lagging indicator. To a second decimal place it was 3.96% but it’s hard to look at the rounded 4.0% and not feel a bit uneasy. That said, overall report still looks strong.”