US Job Market Remains Robust, Unemployment Rate Stabilizes at 4.2%
The US Labor Department announced on Friday that the unemployment rate in May remained stable at 4.2 percent, with the number of jobless individuals holding steady at 7.2 million.
According to the department, American businesses created approximately 139,000 new positions outside of agriculture, with significant growth in the healthcare, tourism and social support sectors. In contrast, the public sector continued to experience a decline in employment. The number of long-term unemployed individuals decreased to 1.5 million, a downward trend.
The US labor market data is closely monitored by investors worldwide, as a robust job market and high inflation can make interest rate cuts less likely. This would be a welcome development for stock market participants, as it would make savings accounts less attractive compared to investments and make it cheaper for companies and other entities to borrow funds.