In what could be seen as good news for incumbents in the United States, according to recent reports, the United States has added more jobs to the market in the month of May than anticipated by analysts. The wages also saw an uptick, as wage growth increased by 4.1 per cent in 12 months.
Young Workforce Affected
This data set, however, comes with a caveat, as, according to reports, the US labour department said that the unemployment also rose in April from 3.9 to 4.1 per cent.
In this, the youngest working population or aspiring working population remains profusely affected. The 16–24 age group is in particular focus. In May, about 408,000 fewer people were employed in the world's largest economy. Almost all of them were under the age of 24.
The interesting part of this development and the age group is that these are mostly new entrants, fresh graduates, with limited or no experience ushering into the job market.
Despite this concern, the recent surge in jobs has revived hopes of an interest rate cut by the US Federal Reserve in the near future, potentially in September. The next Fed meeting under the leadership of Fed Chair Jerome Powell is scheduled to happen between June 11 and 12. | File pic
With more fresh graduates availing themselves in the economy in the time to come, this phenomenon may only expand further. It is understood that in times of uncertainty (global and domestic), businesses have a greater propensity towards hiring an experienced and tested workforce over a tranche that is still wet behind the years.
Hopes For Rate Cuts
Despite this concern, the recent surge in jobs has revived hopes of an interest rate cut by the US Federal Reserve in the near future, potentially in September. The next Fed meeting under the leadership of Fed Chair Jerome Powell is scheduled to happen between June 11 and 12.
The US market ended the last day of trading of the week on a negative note. The Dow Jones Industrial Average ended the day's proceedings in red, with a 0.22 per cent or 87.18 points, decline, closing at 38,798.99.
The S&P 500 also observed a drop in its numbers, decreasing by 0.11 per cent or 5.97 points, taking the total tally to 5,346.99. The Nasdaq Composite was no different, it also declined by 0.23 or 40.00 points to close on 17,133.12.
