U.S. Unemployment Rate Fell to 3.8% in May; Economy Added 223,000 Jobs

The Labor Department released its official hiring and unemployment figures for May on Friday, providing the latest snapshot of the American economy.

The American economy roared into overdrive last month, delivering the strongest job gains since February. The report underscored other recent signs of strength, like robust personal income and spending data reported earlier this week. The unemployment rate for May was at lows not seen since the heady days of the dot-com bubble.

Policymakers at the Federal Reserve are almost certain to raise interest rates when they meet this month, and have said they expect at least one more increase later this year, most likely in September or December. The stately pace of the Fed’s campaign to tighten monetary policy has reassured Wall Street, which has been edgy lately over trade tensions and the prospect of a populist-style government in Italy.

“It was certainly a good number, with some weather-related bounce back in construction,” said Diane Swonk, an economist with Grant Thornton. While the unemployment rate may have moved in the right direction last month, she added, “it went down for the wrong reason, a reduction in the size of the labor force.”

Although the jobs numbers are traditionally kept under wraps by the Labor Department until the 8:30 a.m. release, in an unusual departure from protocol, President Trump hinted on Twitter an hour earlier that positive data was in store. “Looking forward to seeing the employment numbers at 8:30 this morning,” he tweeted.

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