- James B. Bullard, president of the St. Louis Fed
American employers added considerably more jobs in May than expected, according to the Labor Department, alleviating worries about the US economy's momentum following a stretch of tepid growth earlier this year. The world's number one economy created 280,000 jobs last month, compared with economists' expectations for a 225,000 gain. Nevertheless, the unemployment rate crept up to 5.5%, compared with 5.4% reported a month earlier, as the labour force participation rate rose to 62.9%. So far this year, the economy has added an average of 194,000 new jobs a month, compared with the 281,000 jobs created each month in the second half of 2014. On average, around 260,000 jobs were added each month of 2014, making the past year the best year for job growth since 1999. However, job creation is expected to slow further by 2016. Wages also showed growth, rising eight cents an hour, equating to an annualized increase of 2.3%.
Many Federal Reserve officials feel that the economic data is not strong enough to justify raising interest rates this month when they meet on 16-17 June. In addition to that, the International Monetary Fund asked the Fed to hold off raising interest rates until the first half of 2016 due of disappointing growth and a lack of inflation.
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