It’s as if the economy knew it was National Donut Day and wanted to join the celebrations by delivering a strong May jobs report this morning.
Here are three things to know from today’s report:
1. Jobs numbers FAR exceeded expectations. U.S. employers added 280,000 jobs in May, which is the biggest job gain since the end of 2014 and much higher than the 225,000 jobs economists were expecting. That’s especially good news if you look back at some of the numbers from earlier this year.
2. The unemployment rate rose to 5.5 percent, but that’s not bad. Yes, the unemployment rate ticked up slightly from 5.4 percent in April, but there’s a good reason for it. As Reuters puts it: “While the unemployment rate rose to 5.5 percent from a near seven-year low of 5.4 percent in April that was because more people, likely new college graduates, entered the labor force, indicating confidence in the jobs market.”
3. Where are we with wages? If you’ve been following our monthly jobs report recaps, you’ll know that we’ve been keeping an eye on wages, as they appeared to be stagnating for quite a while. But that may slowly but surely be changing. As Business Insider puts it: “The report … showed that wages rose faster than expected, with wages rising 0.3% over the prior month and 2.3% over the prior year.”
And that’s not something to be taken lightly. After all, average hourly earnings have risen to its highest level since mid-2013 — and that’s certainly something to eat a donut about.