U.S. Adds 172,000 Jobs in May but Real Wages Fall as Inflation Outpaces Earnings

U.S. economy added 172,000 jobs in May, according to Bureau of Labor Statistics data released this week. That figure exceeded the 85,000 to 110,000 gain most analysts had projected. 3 percent for the third consecutive month.

6 percent pace recorded in April. ” He noted that Black unemployment remains elevated, federal government employment continues to decline, and workers unemployed for more than 27 weeks are having difficulty finding new positions. Ajilore added that slowing wage growth is a concern given rising prices tied to conflict in the Middle East and the current tariff regime.

8 percent from a year earlier. Median home listing prices fell for the seventh consecutive month. com data.

2 percent above the May 2019 level. com Senior Economist Jake Krimmel said four months of solid job growth is “nothing to sneeze at,” yet the key metric for households and housing is the gap between earnings growth and inflation. 2 percent when next week’s data arrive, real wages remain negative and are moving in the wrong direction, he said.

Krimmel noted that housing demand has stayed resilient this spring, with annual gains in pending listings and contract signings. Sellers have adjusted expectations, he said, and asking prices have declined for seven straight months.

Krimmel said an improving labor market reduces one source of concern for the Federal Reserve and allows policymakers to focus on inflation. He added that mortgage rates are likely to remain more sensitive to geopolitics, inflation expectations, and war-driven uncertainty than to monthly employment figures in the near term.