May jobs report shows mixed economic picture

U.S. employers added 175,000 jobs to their payrolls in May, the U.S. Bureau of Labor Statistics (BLS) reported Friday.

That beat economists’ average estimates for about 160,000 jobs. It’s also an improvement from April when employers added 149,000 jobs. However, that April figure was revised down from 165,000 when originally reported a month ago.

The May jobs report also featured other less than stellar data points. The unemployment rate increased to 7.6 percent from 7.5 percent the month before. Average weekly hours worked on private payrolls were unchanged and average hourly earnings were essentially unchanged, ticking up one penny from April. And, manufacturing employment fell slightly, while construction jobs increased only modestly.

On the positive side, the civilian labor force increased by 420,000 people in May. The labor-force participation rate edged up to 63.4 percent last month from 63.3 percent in April, but still remains near a 35-year low, according to the BLS data. The number of people not in the labor force decreased by 231,000 in May.

Private employers added 178,000 total jobs in May, while government payrolls decreased by 3,000 positions, according to the BLS.

Leading the job gains was professional and business services, adding 57,000 jobs. The leisure and hospitality industry added 43,000 positions, including 38,000 in food services and drinking places, the BLS said.

Retail trade employment grew by 27,700 jobs in May from a month earlier, while education and health services jobs increased by 26,000 positions. 

Contact Rombel at arombel@cnybj.com