On top of that, the most recent readings for March and May were revised sharply higher.
As the chart below illustrates, job growth has topped 150,000 in four of the past five months, a stretch we haven’t seen since early 2024.
While that figure comes from a different survey, job gains above 150,000 suggest that even faster hiring may be needed to push an already low unemployment rate lower.
Nonetheless, in another sign that prospects are improving, the US BLS reported last week that job openings in April rose at the fastest pace since early 2021.
Still, job growth isn’t happening across the board, but after last year’s slowdown, the overall rebound is welcome
And it’s happening even as economic uncertainty has ramped up due to the war in the Middle East, high gas prices, and a fragile ceasefire that, at least for now, has prevented a larger conflict from breaking out.
Economic growth has historically led to job growth. Sales rise and companies look for staff to support improving business conditions.
For reasons that aren’t fully understood, we didn’t see that last year in private-sector jobs outside of health care, but it appears the historic trend is beginning to reassert itself.
For investors, a firmer job market, coupled with still-high inflation, raises the odds that the Federal Reserve’s next move could be a rate hike.
