Unemployment Rate Unchanged
Jobs Growth
The month of May saw the creation of 139,000 new jobs. This pace tracked fairly closely with April numbers, following downward revision of the latter from 177,000 to 147,000. Activity in May was also in line with the average monthly gain over the past 12 months of 149,000.
Top Industries
The sectors reporting the strongest growth for May were healthcare, leisure and hospitality, and social assistance. Federal employment decreased.
Unemployment
The unemployment rate in May was unchanged for the third month in a row at 4.2%.
Wages
Compensation trends moved ahead slightly in May, with an increase in wages of 0.4%. That bump brought the increase in average hourly earnings over the past 12 months to 3.9%.
Work Week
For the third consecutive month, the average work week in May was unchanged at 34.3 hours.
Temporary Job Trends
The temporary jobs sector lost more than 20,000 jobs in May.
What Does It All Mean?
This month, the labor market continued to hold its own amid ongoing concerns about tariffs, trade, and inflation. Based on revisions of jobs creation numbers over the past few months, it is clear that the market has cooled somewhat. Although the pace of hiring has slowed, the level of activity remains solid overall.
The latest jobs report allayed fears of an imminent downturn, but it did not eliminate them. With the near-term economic horizon shrouded in uncertainty, many businesses are hesitant to make bold moves. Employers need far greater clarity about the economic outlook as well as the timing and potential impact of new policies. The current lack of forward-facing transparency is leading many to put plans for growth, including workforce expansion, on hold.
Just as employers are more likely to maintain the status quo for now, those currently employed are more likely to stay put. Less movement in and out of businesses, at least temporarily, can create opportunities to leverage talent in new ways and focus on internal priorities, such as ways to spur innovation and drive productivity.
Sources: U.S. Bureau of Labor Statistics, Staffing Industry Analysts, CBS News, CNN, CNBC, The Wall Street Journal, USA Today, Wall Street Journal, FOX Business, Reuters, MarketWatch
