US job growth accelerated in May and the unemployment rate dropped to an 18-year low of 3.8 percent, pointing to rapidly tightening labor market conditions, which could stir concerns about inflation. Nonfarm payrolls increased by 223,000 jobs last month as warm weather boosted hiring at construction sites. After the employment report, traders increased bets that the Fed would raise interest rates four times this year. BROAD JOB GAINSEconomists polled by Reuters had forecast nonfarm payrolls increasing by 188,000 jobs last month and the unemployment rate steady at 3.9 percent. With job growth expected to slow as employers struggle to find qualified workers, economists expected wage growth will pick up significantly.

Source: dna June 01, 2018 14:26 UTC