US adds 223,000 new jobs; jobless rate falls record low

Published: June 02, 2018 11:58:33 | Updated: June 05, 2018 13:56:25

File Photo (Reuters)

US unemployment rate dropped to an 18-year low of 3.8 per cent, while nonfarm payrolls surged by 223,000 jobs as warm weather bolstered hiring at construction sites.

The jobs growth was faster than expected in the last month, while the average hourly pay of private sector workers increased 2.7 per cent year-on-year, compared with 2.6 per cent in April.

Surveys of economists had predicted that there would be a gain of about 188,000 jobs in May, reports BBC.

Analysts said the positive jobs data fuelled expectations that the central bank, the Federal Reserve, would raise interest rates at its next meeting later this month.

The unemployment rate has not been this low since April 2000 and has already fulfilled the Fed's forecast of 3.8 per cent by the end of 2018.

Construction added 25,000 jobs, and manufacturing sector of the largest economic country of the world created another 18,000 jobs.

However, the US economy grows at a slower 2.2 per cent.

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