US Economy Added 390,000 Jobs in May

The U.S. economy beat economists' expectations in May by adding 390,000 jobs, according to the Labor Department.

Economists surveyed across the spectrum predicted that 325,000 jobs would be added. May's total was higher than expected, but still the fewest amount of jobs added in a month over the past year. The unemployment rate in May was 3.6%, remaining steady from April at its lowest point since the COVID-19 pandemic began. The biggest job gains by industry in May were in leisure and hospitality (84,000), professional and business services (75,000) and transportation and warehousing (47,000).

Earnings also rose 5.2% in May from the previous year, well above the pre-pandemic average of 3%. Meanwhile, the annual inflation rate remains high at 8.3%; the Labor Department's most recent inflation data is expected next week.

News sources across the political spectrum covered the data prominently, and many framed it as indicative of strong job growth while also highlighting some less promising details. One report from Fox Business placed the data in the context of "growing fears of a recession amid sky-high inflation and an increasingly aggressive Federal Reserve." Another report from CBS News said the job market "may be cooling from its red-hot pace last year," and pointed to how wage growth remains below the inflation rate.