Employers Defy Expectations on Hiring

Latest report is much stronger than expected, and Wall Street isn't thrilled
By John Johnson,  Newser Staff
Posted Jun 7, 2024 7:57 AM CDT
Employers Defy Expectations on Hiring
A hiring sign is displayed at a retail store in Vernon Hills, Ill.   (AP Photo/Nam Y. Huh)

The latest jobs report came in much stronger than expected, but that sign of continued economic strength isn't playing well on Wall Street:

  • New jobs: Employers added 272,000 jobs in May, well above expectations of 190,000, reports CNBC. The figure is also up sharply from April's 165,000. The biggest gains were mostly in the health care, government, and leisure and hospitality sectors.
  • Rate rises: Despite the robust hiring, the unemployment rate ticked up to 4% from 3.9%, the first time it's reached that level since January 2022. That ends a 27-month streak of the rate being below 4%, matching the longest such stretch since the late 1960s, per the AP.

  • The markets: Dow futures, which were slightly positive before the report came out, sank about 120 points in the immediate aftermath. Investors fear the strong hiring will make the Federal Reserve more reluctant to lower interest rates.
  • The upside: Wall Street may not be thrilled, but the big number is "a sign that companies are still confident enough in the economy to keep hiring despite persistently high interest rates," per the AP.
(More jobs report stories.)

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