Market analysts expected just 180,000 positions to be generated, according to the MarketWatch consensus.
Economists consulted by Reuters estimated an increase in private employment of 170,000 jobs.
Job growth has slowed from last year’s strong pace, but the job market has held firm despite the Fed’s 500 basis point rate hikes since March 2022, when the central bank embarked on its fastest monetary tightening campaign since the 1980s to control inflation.
The government reported on Wednesday that there were 10.1 million vacant jobs at the end of April, when there were 1.8 vacancies for every unemployed person, compared to 1.7 in March. That is well above the range of 1-1.2 that is considered consistent with a balanced labor market.
Unemployment benefits
The number of Americans filing new jobless claims rose modestly in the past week, suggesting that the labor market remains tight despite growing fears of a recession amid rising borrowing costs.
Initial claims for state unemployment benefits increased by 2,000, to a seasonally adjusted 232,000, in the week ending May 27. Economists polled by Reuters expected 235,000 orders.
Requests remain very low by historical standards, despite the fact that the Federal Reserve (Fed) has raised interest rates by 500 basis points since March 2022, when the US central bank launched its most recent tightening campaign. since the 1980s to contain inflation.
Although job growth has slowed from last year’s strong pace, the demand for labor remains strong.
While there have been high-profile layoffs in the technology sector and in rate-sensitive industries like housing, employers have generally been hoarding workers after difficulties finding labor in the wake of the Covid-19 pandemic.