June 7, 2013
U.S. employment rose more than expected last month, and more Americans entered the workforce, signals that the economy withstood the effects of higher taxes and federal budgets cuts.
Payrolls increased by 175,000 in May, more than the 163,000 that economists predicted, according to Labor Department data released this morning. May’s gain followed a revised 149,000 in April, a figure smaller than initially estimated.
More workers entering the labor force pushed up the unemployment rate to 7.6% from 7.5% a month a earlier. Wage gains, meanwhile, aren’t keeping pace. Average hourly earnings were $23.89 in May, just a penny more than in April.