U.S. unemployment rate falls to 18-year low in May

WASHINGTON, June 1 (Xinhua) -- U.S. unemployment rate fell to an 18-year low and hiring rose more than forecast in May, the Labor Department reported on Friday.

U.S. unemployment rate fell to 3.8 percent last month, the lowest level since April 2000, while non-farm payroll employment increased by 223,000, beating economists' expectation of 190,000.

After revisions, job gains averaged 179,000 over the past three months, as the job market was approaching full employment.

Average hourly earnings of private-sector workers rose 2.7 percent in May from a year ago, in line with recent monthly readings.

Fed Governor Lael Brainard said Thursday there was more evidence that labor markets are tightening and wages are accelerating, although at a measured pace.

She believed that a gradual pace of interest rate hikes remains the appropriate path for the central bank to sustain strong labor market and achieve its 2-percent inflation target.

"I continue to view gradual increases in the federal funds rate as the appropriate path, although I will remain vigilant for the emergence of risks and prepared to adjust if conditions change," she said. Enditem