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- Nonfarm payrolls increase less than expected in May
Nonfarm payrolls increase less than expected in May
The U.S. Labor
Department announced on Friday that nonfarm payrolls increased by 75,000 in May
after a downwardly revised 224,000 gain in the prior month (originally an
increase of 263,000). It marked the smallest increase since February.
According to
the report, employment rose in professional and business services (+33,000 jobs)
and in health care (+16,000) and showed little change in other major industries.
At the same
time, the unemployment rate remained at 3.6 percent in May.
Economists had
forecast 185,000 new jobs and the jobless rate to stay at 3.6 percent.
The labor force
participation rate was unchanged at 62.8 percent in May, while hourly earnings
for private-sector workers rose 0.2 percent m-o-m (6 cents) to $27.83,
following an unrevised 0.2 percent m-o-m gain in April. Economists had forecast
a 0.3 percent m-o-m advance in the average hourly earnings. Over the year, average
hourly earnings have increased by 3.1 percent.
The average
workweek was unchanged at 34.4 hours in May, compared to economists’ forecast
of 34.5 hours.
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