Data from the Employment Survey for May was released this week. The job market continues to be tight.
Nonfarm payrolls increased by 390,000 and payrolls were up 65,000 more than expected. Much of the growth is coming from leisure and hospitality, professional and business services, and in transportation and warehousing.
The growth in leisure and hospitality indicates people are traveling again. As we know, this industry was decimated throughout the pandemic.
Retail trade payrolls declined over the period. The strong payrolls number contributed to unemployment staying flat at 3.6%.
Unemployment has been at 3.6% for three months in a row. Labor markets are expected to continue to be tight with 11.4 million jobs still open. Pre-pandemic, less than 7.5 million jobs were open.
Some companies have shed jobs after accelerating hiring to meet consumer demand in 2020 and 2021.