Friday, June 7, 2013

Unemployment Rose to 7.6% with the U.S. Economy Adding 175,000 Jobs in May

Payroll employment increased by 175,000 jobs in May, as the unemployment rate increased 0.1% to 7.6% from the previous month. May’s growth is still below the 1Q13 average of 207,000 jobs per month. May’s report saw April’s job gains revised down from 165,000 to 149,000, while March was revised up slightly.

Similar to previous months, May’s strong numbers were solely due to the private sector, driven by the service industry, which added 176,000 jobs. The private industry as a whole added 178,000 jobs in May, up from a revised 157,000 in April. The goods producing sector shed 1,000 jobs in May, following a revised 15,000 job loss in April.

The government continues to drag on growth and lost 3,000 jobs in May. It is the government’s lowest amount of job lost in a given month since February. The government is expected to continue to drag on payroll employment through the end of this fiscal year as the impacts of sequester take hold.

The unemployment rate ticked up to 7.6% from the previous month’s 7.5% rate. The increase in the unemployment rate is due to new entrants in the labor force. The labor force participation rate increased to 63.4%.

Read the BLS report.

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