Unemployment rises for 3rd straight month, hits 4% for first time since Jan 2022

The unemployment rate has risen yet again for the third consecutive month in a row, hitting four percent across the US. This marks the first time that unemployment reached that point since January 2022 in the second year of Joe Biden's presidency.

According to data from the Bureau of Labor Statistics, in the month of May, the unemployment rate rose again from 3.9 to four percent across the US. This is despite a jobs report indicating that 272,000 jobs were added to the economy in the month of May. Interest rates are still holding and there is no sign of them being cut.

Biden celebrated the jobs report, commenting in a statement that the "great American comeback” is continuing. "On my watch, 15.6 million more Americans have the dignity and respect that comes with a job." Inflation is staying relatively high, as reported by MarketWatch. The Fed is still looking for the inflation rate to come down in order to cut rates in the economy.

Per the Bureau of Labor Statistics (BLS), a large portion of the jobs that were added in May consisted of 68,000 added in healthcare, 43,000 added in government jobs, and leisure and hospitality increased by 42,000 jobs. Most other industries did not see as large of a bump and employment "showed little or no change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; transportation and warehousing; information; financial activities; and other services."

Of those jobs added to the workforce, only 81,400 were from private production and nonsupervisory employees, translating to that the majority of jobs added to the economy are not blue-collar jobs, or part of the "typical worker" in the US labor force, as defined by the Economic Policy Institute and usually accounts for 80 percent of the labor force. The stat may seem to be in contrast with Biden's pitch to blue-collar Americans that work is readily available for them in the private sector.

The workforce participation rate also decreased from 62.7 to 62.5 percent over the course of May in the US. To analyze the data to arrive at the increased job rate, the BLS sent out surveys to households as well as businesses in order to collect the data to make the estimates about the various jobs. The BLS also notes, "It is likely that both surveys include at least some undocumented immigrants. However, neither the establishment nor the household survey is designed to identify the legal status of workers."
 

Some in the US fear that the massive influx of immigration in the country may shorten the supply of jobs available to US citizens in an economy that many are struggling in because of high costs from inflation.