fbpx Strong US jobs report for May should not change Fed plans - Karen Dynan and Wilson Powell | Harvard Kennedy School

HKS Affiliated Authors

Professor of the Practice of Public Policy, HKS; Professor of the Practice of Economics, FAS

Additional Authors:

  • Wilson Powell

Excerpt

June 3, 2022, Opinion: "The US employment report for May confirmed that the demand for workers cooled somewhat this spring but remains strong. Nonfarm payrolls rose 390,000, a bit more than the consensus forecast, and the revisions to earlier months were small. As can be seen in figure 1, the May data bring the 3-month average growth rate of employment down to 408,000—down about one-third since the winter. The unemployment rate was unchanged at 3.6 percent in May, remaining in the low range seen in the robust pre-pandemic labor market. Labor force participation ticked up 0.1 percentage point but is still well below the level of early 2020. The May employment report provided more evidence that wage growth is slowing, with the 12-month growth rate of average hourly earnings moving down to 5.2 percent." Read Via PIIE

HKS Faculty Author - Karen Dynan
HKS Author - Wilson Powell III