The U.S. economy added 390,000 jobs in May 2022

The U.S. economy added 390,000 jobs in May 2022, better than expected despite fears of an economic slowdown and with a roaring pace of inflation, the Bureau of Labor Statistics reported Friday, June 3.

At the same time, the unemployment rate held at 3.6%, just above the lowest level since December 1969.

Average hourly earnings increased 0.3% from April, slightly lower than the 0.4% estimate. The year-over-year increase for wages of 5.2% was in line with expectations.

Job gains were broad-based. Leisure and hospitality led, adding 84,000 positions. Professional and business services rose by 75,000, transportation and warehousing contributed 47,000, and construction jobs increased by 36,000.

Other areas that saw notable gains included state government education (36,000), private education (33,000), health care (28,000), manufacturing (18,000) and wholesale trade (14,000).

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Though there have been recent signs that inflation could be slowing, the current pace is still around the fastest in 40 years. Prices at the pump specifically are at historical highs, with a gallon of regular unleaded at $4.76, up 13% from a month ago and more than 56% from a year ago, according to AAA.

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Businesses have been hampered in the current environment, not least by a shortage of workers that has left nearly two job openings for every available worker. A Fed report earlier this week said businesses are expressing increasing concerns about future prospects – eight of the central bank’s 12 districts reported slowing growth while four specifically cited recession fears.

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