Friday, June 07, 2019

May Employment Report: 75,000 Jobs Added, 3.6% Unemployment Rate

by Calculated Risk on 6/07/2019 08:41:00 AM

From the BLS:

Total nonfarm payroll employment edged up in May (+75,000), and the unemployment rate remained at 3.6 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in professional and business services and in health care.
...
The change in total nonfarm payroll employment for March was revised down from +189,000 to +153,000, and the change for April was revised down from +263,000 to +224,000. With these revisions, employment gains in March and April combined were 75,000 less than previously reported.
...
In May, average hourly earnings for all employees on private nonfarm payrolls increased by 6 cents to $27.83. Over the year, average hourly earnings have increased by 3.1 percent.
emphasis added
Payroll jobs added per monthClick on graph for larger image.

The first graph shows the monthly change in payroll jobs, ex-Census (meaning the impact of the decennial Census temporary hires and layoffs is removed - mostly in 2010 - to show the underlying payroll changes).

Total payrolls increased by 75 thousand in May (private payrolls increased 90 thousand).

Payrolls for March and April were revised down 75 thousand combined.

Year-over-year change employmentThis graph shows the year-over-year change in total non-farm employment since 1968.

In May, the year-over-year change was 2.350 million jobs.

The third graph shows the employment population ratio and the participation rate.

Employment Pop Ratio, participation and unemployment rates The Labor Force Participation Rate was unchanged in May at 62.8%. This is the percentage of the working age population in the labor force.   A large portion of the recent decline in the participation rate is due to demographics and long term trends.

The Employment-Population ratio was unchanged at 60.6% (black line).

I'll post the 25 to 54 age group employment-population ratio graph later.

unemployment rateThe fourth graph shows the unemployment rate.

The unemployment rate was unchanged in May at 3.6%.

This was well below the consensus expectations of 180,000 jobs added, and March and April were revised down by 75,000 combined.  A weak report.

I'll have much more later ...