The U.S. nonfarm payrolls saw a surprising increase of 172,000 jobs in May, nearly double the expected growth, indicating resilience in the economy despite ongoing conflicts in the Middle East.
According to the U.S. Bureau of Labor Statistics, nonfarm employment rose by 172,000 in May, significantly surpassing the forecast of 85,000. Additionally, the April nonfarm employment figure was revised upward from an initial increase of 115,000 to 179,000, while March's figure was adjusted from 185,000 to 214,000. The unemployment rate in May remained steady at 4.3%, consistent with both the forecast and the previous month.
Despite rising prices linked to the Middle East conflict, the U.S. economy continues to show strength, reducing the likelihood of an economic slowdown and increasing the chances of an interest rate hike.
Following the release of the employment data, the yield on 30-year U.S. Treasury bonds surpassed 5%. The CME FedWatch Tool, which tracks market expectations for Federal Reserve interest rate changes, indicated that the probability of a 0.25 percentage point rate increase by the end of the year rose from 38.2% to 41.2%, while the likelihood of a 0.50 percentage point increase increased from 10.9% to 14.4%.
Bloomberg reported that the strong employment figures have heightened expectations that the Federal Reserve will raise interest rates by the end of the year.
* This article has been translated by AI.
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