US jobs surge casts doubt over interest rate cuts

US employers added 272,000 jobs in May which was far higher than economists expected.

British Broadcasting CorporationWatchRegisterSign InHomeNewsSportBusinessInnovationCultureTravelEarthVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUK General ElectionUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC VerifySportBusinessFuture of BusinessTechnology of BusinessWork CultureInnovationTechnologyScience & HealthArtificial IntelligenceCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureTravelEarthVideoLiveAudioWeatherNewslettersUS jobs surge casts doubt over interest rate cuts2 days agoBy Natalie Sherman, BBC NewsShareGetty ImagesHiring in the US surged unexpectedly last month, continuing to defy predictions of a slowdown while raising fresh questions about when interest rates will fall.

Employers added 272,000 jobs in May, the US Labor Department said, above expectations of 185,000 new roles.

The larger-than-expected gain emerged despite the highest borrowing costs in more than 20 years, which analysts have been expecting to weigh on the economy.

The US central bank has raised interest rates sharply since 2022 to fight inflation, which measures the pace of price rises. The Fed has cited the strength in employment as a sign that the economy can handle the current rates.

The latest job figures undermine other data suggesting signs of softening and will bolster the case that talk of cutting borrowing costs is premature, analysts said.

https://www.bbc.com/news/articles/c97763pnlvpo

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