Employment Edges Up in May

The Bureau of Labor Statistics reported this morning that U.S. employers added 78,000 jobs in May following a much larger increase of 274,000 jobs in April. While economists had forecast 175,000 new jobs for the month, April's hefty employment increase, combined with May's 78,000 jobs is expected to accommodate many graduates and other new employment-seekers.

Both the number of unemployed persons, 7.6 million, and the unemployment rate, 5.1 percent, were essentially unchanged in May. For the month, total employment was at 141.5 million, continuing an upward trend that parallels the increase in the civilian labor force.
 
INDUSTRY BREAKDOWN. Total nonfarm employment edged up by 78,000 in May after an increase of 274,000 in the prior month. Payroll job growth averaged 176,000 over the 2 months, in line with the monthly average of 184,000 over the 12 months ended in March. In May, health care and construction continued to add jobs, while employment in most other industries was little changed.
 
Following a sizable April gain, leisure and hospitality employment was flat in May. Employment also was little changed in financial activities and in professional and business services. Over the last 3 months, job growth in professional and business services has averaged 18,000 per month, compared with 52,000 per month during the 12 months ending in February. Temporary help services employment was about unchanged in May and has shown little net growth since October.

In the goods-producing sector, construction employment continued to grow in May (20,000). Within this industry, a gain of 26,000 jobs among residential specialty trade contractors more than offset a loss of 16,000 among nonresidential contractors. Job growth in heavy construction continued in May; employment in the industry has increased by 34,000 since its recent low point in February 2004.
 
WEEKLY HOURS & WAGES. The average workweek for production or nonsupervisory workers on private nonfarm payrolls was unchanged at 33.8 hours in May, seasonally adjusted. The manufacturing workweek decreased by 0.1 hour to 40.4 hours, while manufacturing overtime was unchanged at 4.4 hours.
 
Average hourly earnings of production or nonsupervisory workers on private nonfarm payrolls rose by 3 cents in May to $16.03, seasonally adjusted. Average weekly earnings increased by 0.2 percent over the month to $541.81. Over the year, average hourly and weekly earnings each grew by 2.6 percent.