The national employment report released by ADP on Thursday showed that the number of private jobs increased by 278,000 last month, higher than market expectations. The employment data for April was slightly revised down to 291,000 new jobs, with an initial value of 296,000. Private employment growth in the US exceeded expectations in May, which suggests that the job market is only gradually slowing down. This may cause the Federal Reserve to keep interest rates high for a period of time. Employment growth has slowed compared to last year's strong growth, but the labor market has remained resilient even though the Federal Reserve has raised interest rates by a cumulative total of 500 basis points since March 2022. At that time, the Federal Reserve initiated the fastest monetary policy tightening since the 80s of the last century to curb inflation. The number of JoLTS job vacancies announced by the US government on Wednesday reached 10.1 million in April. Each unemployed person corresponded to 1.8 job vacancies, up from 1.7 in March, and far higher than 1.0-1.2, which is considered to be in line with the balance of the labor market.
The Federal Reserve's tightening of monetary policy is difficult to stop the hot job market
Breakings · 06/01/2023 20:36
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