U.S. adds 172,000 jobs in May as Iran war fuels inflation and wage growth lags
By
Steve Kopack
Lightly browned and well buttered. A solid pick from the rack.
Summary
The U.S. economy added 172,000 jobs in May, showing labor market resilience despite an inflation crisis triggered by the ongoing war in Iran. The unemployment rate held steady at 4.3%, while average hourly earnings rose 3.4% year-over-year—below the 3.8% inflation rate. Rising gasoline prices from the conflict have driven inflation to its highest level in three years, squeezing workers whose wage growth is falling behind the cost of living.
Key quotes
· 3 pulledThe U.S. economy added a robust 172,000 jobs in May, a sign that the labor market remained resilient even despite a growing energy and inflation crisis triggered by the ongoing war in Iran.
Average hourly earnings rose 3.4% from a year ago, which puts wage growth below inflation.
In April, inflation sharply jumped to a 3.8%, its highest level in three years, due to the surging price of gasoline and the resulting economic ripple effect.
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