US jobs growth slows sharply in May. Wage growth is lower than expected

Economy and stock exchange

US employment growth slowed sharply in May, and wages rose less than expected, suggesting that the loss of momentum in economic activity is expanding in the labor market, which could boost calls for the Federal Reserve to cut interest rates this year.

Jobs in the non-farm sectors increased 75,000 jobs last month, less than the 100,000 jobs required per month to keep pace with growth in the working-age population, the government said in the closely monitored job report.

The economy saved 75,000 fewer jobs in March and April than previously estimated.

Economists polled by Reuters had expected jobs to rise 185,000 last month, and monthly wage growth remained modest in May, with the average wage rising by 6 cents, or 0.2 percent, after a similar rise in April.

This cut the annual wage increase to 3.1% from 3.2% in April.

The unemployment rate remained near the 50-year low of 3.6 percent in May, and the unemployment rate fell, partly because of the departure of members of the labor force over the past four months.

(tagsToTranslate) US jobs (t) US employment wages (t) US economy (t) Interest rates