Main Street Independent

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macroeconomics

U.S. adds 172,000 jobs in May; broader underemployment holds at 8.2%

Illustration accompanying article: U.S. adds 172,000 jobs in May; broader underemployment holds at 8.2%
  • The U.S. Bureau of Labor Statistics reported that U.S. employers added 172,000 nonfarm payroll jobs in May, with leisure and hospitality alone contributing 70,000 positions, more than four times its 2025–2026 monthly average.
  • The broader U-6 unemployment rate, which includes discouraged workers and those working part‑time for economic reasons, held at 8.2 percent in May, while the headline U-3 rate remained at 4.3 percent for a third straight month.
  • The JOLTS quits rate stood at 2.2 percent in April, a metric the Federal Reserve Bank of Atlanta interprets as signaling that workers still have limited confidence in their ability to find better‑paying jobs.
  • The Atlanta Fed’s Wage Growth Tracker measured median year‑over‑year wage growth at 3.6 percent in April, using a composition‑controlled matched‑individual method that avoids the distortions of the BLS average‑hourly‑earnings series.
 4 MIN READ

30-year mortgage rate holds at 6.48% as Fed's limited influence frustrates homebuyers

Illustration accompanying article: 30-year mortgage rate holds at 6.48% as Fed's limited influence frustrates
  • The 30-year mortgage rate averaged 6.48% on June 4, 2026, remaining elevated despite Fed rate cuts since 2024, according to Freddie Mac.
  • Mortgage rates are driven primarily by long-term bond markets, not Fed policy, with the 10-year Treasury yield at 4.49% serving as the benchmark, finance professor Michael J. Highfield said.
  • Inflation uncertainty and large federal deficits — including a projected $3.4 trillion addition to deficits from the 2025 tax and immigration bill — are pushing investor yield demands higher, Highfield wrote in an analysis published by The Conversation.
  • Historically, today's rates are within normal range: during the 1990s and early 2000s, mortgage rates frequently ranged from 6% to 8%, Highfield noted.
 3 MIN READ
Illustration accompanying article: Eurozone retail sales fell 0.4% in April as Iran war energy costs bite