US non-farm payrolls and hourly earnings outpace forecasts in May

(Sharecast News) - Hiring and wage growth in the US outpaced forecasts by a very wide margin in May. According to the Department of Labor, the results of the Establishment Survey revealed a seasonally adjusted jump in non-farm payrolls of 272,000 for last month.

That compared to a consensus estimate of 185,000.

Revisions showed that payrolls expanded by 15,000 less than previously thought during the preceding two months combined.

Average hourly earnings were up by 0.3% month-on-month and 4.1% year-on-year (consensus: 3.9%).

Government hiring did recover to around its recent trend with 43,000 positions added during the month.

But it was private sector hiring that drove the improvement, rising by 229,000 after a 158,000 gain in April.

The Household Survey on the other hand showed a one tenth of a percentage rise in the rate of unemployment versus the prior month to reach 4.1% (consensus: 3.9%).

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