US Unemployment Rate Rises in May

According to reports from the EFE, the US closed the month of May with the highest unemployment rate since January 2022, reaching 4 percent.

The Bureau of Labor Statistics reported that despite this situation, 272,000 new jobs were created in May.

This figure represents 107,000 more new vacancies than the previous month, when 165,000 were counted in April.

Another piece of good news is that the 272,000 new jobs exceed the average number over the last year, which has averaged 232,000 job vacancies.

May Ends with High Number of New Jobs But a Higher Unemployment Rate

It is worth noting that President Biden has boasted in recent years that he has managed to keep the unemployment rate below 4 percent.

The main job opportunities reported by the government are in areas such as hospitality, professional services, healthcare, and government positions.

In May, there were 6.6 million unemployed people, compared to 6.1 million in the same month of 2023.

Another notable fact is that over the last year, the average hourly wage has increased by 4.1 percent.

Regarding inflation, the data for May will be released next week, as the rate fell to 3.4 percent in April.

There have been 11 consecutive increases in inflation since March 2022, and it is forecasted that May will show a decrease, according to the Fed.

The Fed has kept interest rates between 5.25 and 5.5 percent, a maximum level not seen for 23 years.

The goal is to lower inflation to 2 percent, but this is a long-term target. Could this help lower the high unemployment rate?