US jobs data stronger than expected

The number of new US jobs climbed higher than expected in May.

The number of new US jobs climbed higher than expected in May.

US Labor Department data out today showed 157,000 new jobs in May, although the factory sector workforce continued to decline.

The new jobs total in May outstripped Wall Street economists' forecasts of 130,000 jobs and fits with other data showing economic activity bouncing back from a soft patch in the first three months of the year.

It may also raise fears about the possibility that tight labour markets will fan wage and price pressures.

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The monthly unemployment rate was unchanged at 4.5 per cent in May.

All the new May jobs came in service-producing industries, which produced 176,000 more jobs while 19,000 were lost from the goods-producing sector. Among service businesses, there was healthy job growth in financial activities, business services, education, the hospitality industry and in government.

But another 19,000 jobs were shed by manufacturing businesses, and there was no job growth at all in construction industries.

Average hours of work rose slightly to 33.9 from 33.8 in April, though overtime hours fell slightly to 4.1 in May from 4.2 in April.