US Economy Adds Fewer Jobs than Expected


Nonfarm payrolls in the US increased by 75 thousand in May 2019, following a downwardly revised 224 thousand rise in April and missing market expectations of 185 thousand. Employment continued to trend up in professional and business services and in health care. Monthly job gains have averaged 164 thousand in 2019, compared with an average gain of 223 thousand per month in 2018.

Employment in professional and business services continued to trend up over the month (+33,000) and has increased by 498,000 over the past 12 months.

Employment in health care continued its upward trend in May (+16,000). The industry has added 391,000 jobs over the past 12 months.

Construction employment changed little in May (+4,000), following an increase of 30,000 in April. The industry has added 215,000 jobs over the past 12 months.

Employment showed little change in May in other major industries, including mining, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities, leisure and hospitality, and government.    

In May, average hourly earnings for all employees on private nonfarm payrolls increased by 6 cents to $27.83. Over the year, average hourly earnings have increased by 3.1 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 7 cents to $23.38 in May.

The average workweek for all employees on private nonfarm payrolls was unchanged at 34.4 hours in May. In manufacturing, the average workweek and overtime hours were unchanged at 40.6 hours and 3.4 hours, respectively. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged down by 0.1 hour to 33.6 hours.

The change in total nonfarm payroll employment for March was revised down from +189,000 to +153,000, and the change for April was revised down from +263,000 to +224,000. With these revisions, employment gains in March and April combined were 75,000 less than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.) After revisions, job gains have averaged 151,000 per month over the last 3 months.

US Economy Adds Fewer Jobs than Expected


BLS | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/7/2019 12:52:30 PM