Job creation walked a steady path this spring … downward. Fewer jobs were added to payrolls each month, and previous reports were revised lower. This is how it played out:
What is the Non-farm Payrolls report? The Non-farm Payrolls report measures the number of people on the payrolls of all non-agricultural businesses each month, and represents around 80 percent of workers who produce the Gross Domestic Product of the United States.
What’s happened recently? The Bureau of Labor Statistics reported U.S. employers hired just 38,000 new workers in May, well below the 155,000 expected. It was the lowest number since September 2010. The number of job creations for March and April were also revised lower.
What’s the bottom line? While new job creations in May were low, one bright spot is that the Unemployment Rate fell to 4.7 percent, which is in the target range for full employment. However, this figure does not cover those Americans who aren’t actively looking for a job or those who are underemployed. Overall, while these numbers don’t mean the economy is falling apart, the slowdown in the labor sector is a concern and will be important to monitor heading into summer.
I’ll continue to watch economic reports closely, but if you have any immediate questions don’t hesitate to contact me.