Jobs Growth Takes an Expected Dip

The Department of Labor released its May employment situation report (link opens in PDF) today, and the labor market still has a ways to go along the recovery road. 

After increasing by a strong 282,000 for April, total nonfarm payroll employment edged up a smaller 217,000 this past month. But after previous signs of a labor market slowdown, analysts hadn't been expecting much, and their 213,000 estimate proved almost spot-on. 

Monthly job growth has now averaged 234,000 for the past three months, up sharply from 150,000 in the previous three. In addition, with the latest increase, nearly five years after the Great Recession ended, the economy has finally regained all the jobs lost in the downturn.

The unemployment rate held steady at 6.3% in the latest report. Historically, the unemployment rate has served as an important economic signal, and it has until recently received significant attention as providing a "threshold level" for Federal Reserve monetary actions. But in a March announcement, the Fed backtracked on its definitive decision point, so this latest reading could have less of an impact.

Source: Labor Department 

Diving deeper into the latest numbers, the private sector provided the main push for May employment. Professional and business services added 55,000 jobs, as did the health care and social assistance sector. Food services and drinking places also employed more Americans, growing their ranks by 32,000.

For those with jobs, May's average hourly earnings inched up $0.05 to $24.38, on par with analyst expectations. In the last year, hourly earnings have increased 2.1%.

-- Material from The Associated Press was used in this report.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2985332, ~/Articles/ArticleHandler.aspx, 8/28/2015 2:03:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Justin Loiseau

Energy and Macroeconomic Specialist keeping investors up to date with macro news, utilities, and good companies doing good things.

Today's Market

updated 4 hours ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes