The pace of job creation in the US slowed more than expected in May as the unemployment rate fell to a 16-year low.
The pace of job creation in the US slowed more than expected in May, and less participation in the labor market helped to push the unemployment rate to a 16-year low.
The economy added 138,000 nonfarm payrolls while the unemployment rate fell to 4.3%, the Bureau of Labor Statistics said in its monthly report on Friday.
Economists had forecast 182,000 nonfarm payrolls and a 4.4% unemployment rate, according to a Bloomberg survey.
A broader measure of unemployment that includes people who are working part-time but would prefer full-time jobs — the U6 or underemployment rate — fell to 8.4%, the lowest level since November 2007.
The share of people who are either working or job hunting relative to everyone in their prime working age — the labor-force participation rate — declined to 62.7% from 62.9%.
Wage growth was little changed, and economists had expected this because of a calendar quirk: the survey week for the jobs report usually includes the 12th of the month. But in May, it was different from the week of May 15, when many workers get paid and would receive any raises.
Average hourly earnings increased by 0.2% from April, and rose 2.5% year-on-year.
Despite the miss on job gains, this report should provide the final green light to the Federal Reserve. It meets later in June and is expected to raise borrowing costs for the second time this year, confident that wages will eventually pick up amid a shortage of skilled workers.
Retail trade lost 6,100 jobs, and the majority were in large department stores. Up to 3,500 stores are expected to close this year as more consumers choose to shop online.
The pace of job creation in the US slowed more than expected in May as the unemployment rate fell to a 16-year low. Read Full Story
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