On Friday, US Labour Department’s closely observed employment report for May had missed analysts’ estimate, but reported a decent growth as US employers perked up hiring last month and raised wages amid a steep shortage of workers with millions of Americans sitting jobless at home largely due to massive state unemployment aids and childcare issues alongside lingering frets over contracting pandemic contagion.
Aside from a decent job growth last month that heaved US unemployment rate down to 5.8 per cent following a surprise rise in April, other economic data released earlier in the day had unveiled that US private employers had raised hourly pay offs roughly 2 per cent in April amid a havoc-scale worker shortage compared to the same time a year earlier, as massive Government stimulus alongside the US Fed’s ultra-easy monetary policy had allowed pandemic-wary Americans to stay at home despite an acceleration in vaccination drive.
Nonetheless, 29 Republican-controlled US states have been set to switch off an additional $300 per week in state unemployment benefits as early as by next month, a month earlier than the plan proposed by the US President Joe Biden.
US nonfarm payroll posts modest gain
According to US Labour Department, US nonfarm payrolls had added 559,000 jobs last month, missing an analysts’ estimate of about 650,000 jobs, while data for April had been revised higher to 278,000 jobs, however, about 9.3 million Americans had been officially classified as unemployed last month, leaving US nonfarm payrolls roughly 7.6 million below a February 2020 peak.
Meanwhile, referring to workers’ reluctance to get employed in context of massive fiscal stimulus, a chief economist at FHN Financial in New York, Chris Low said, “There are still a lot of people unemployed, but there does not seem to be a lot of eagerness to work. There would have been many more hires if employers could find more people”.