BREAKING: May Jobs Report: 272K Added, Unemployment 4.0%, But ...

Total nonfarm payroll employment increased by 272,000 in May, and the unemployment rate changed little at 4.0 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in several industries, led by health care; government; leisure and hospitality; and professional, scientific, and technical services....

Advertisement

Both the labor force participation rate, at 62.5 percent, and the employment-population ratio, at 60.1 percent, were little changed in May. These measures showed little change over the year. (See table A-1.) ...

In May, average hourly earnings for all employees on private nonfarm payrolls increased by 14 cents, or 0.4 percent, to $34.91. Over the past 12 months, average hourly earnings have increased by 4.1 percent. In May, average hourly earnings of private-sector production and nonsupervisory employees increased by 14 cents, or 0.5 percent, to $29.99. (See tables B-3 and B-8.)

The average workweek for all employees on private nonfarm payrolls remained at 34.3 hours in May. In manufacturing, the average workweek was unchanged at 40.1 hours, while overtime edged up to 3.0 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.8 hours. (See tables B-2 and B-7.) 

Ed Morrissey

On the surface, this looks fairly unremarkable. Even the revisions aren't significant enough of a deviation from the norm: only 15,000 jobs over two months. The pace is better than maintenance by a significant amount, and wages are growing faster than inflation at the moment. 

However, Heather Long sees trouble ahead:

"... will need to watch this in the coming months." This data comes from the more volatile Household Data (jobs added comes from Establishment Data), where these numbers can be chaotic on a month-to-month basis. It's worth watching, but it may well just be a survey issue that resolves next month too. The Household survey is suffering from the same reluctance to talk to pollsters that every other pollster is experiencing. 

It's definitely worth watching, but may not mean much. Yet. 

Join the conversation as a VIP Member

Trending on HotAir Videos

Advertisement
Advertisement
Advertisement