The job market is much stronger than economists expected. Why? The U.S. job market added 172,000 jobs in May, exceeding forecasts and showing a significant increase in average monthly job growth compared to the previous year. This strength is attributed to high corporate profits, particularly in the health care sector, and seasonal demand, although some sectors and specific worker groups continue to struggle.

• Employers added 172,000 jobs in May, surpassing analyst expectations.
• Average monthly job growth has tripled compared to the previous year.
• Strong corporate profits, bolstered by tax cuts, are a key driver of hiring.
• The health care industry is the top sector for job creation.
• Leisure and hospitality also saw significant job gains ahead of summer and the World Cup.
• Despite overall strength, some sectors like government and financial services have lost jobs.
• Job seekers, particularly recent graduates and long-term unemployed, still face difficulties finding work.
• Worker pessimism persists, with many believing it would be difficult to find a new job.