U.S. Added More-than-Expected Jobs in May

Total nonfarm payroll employment grew by an unexpectedly large 172,000 jobs in May, and the unemployment rate was unchanged at 4.3 percent, the U.S. Bureau of Labor Statistics reported.

Employment was little changed retail. Within the sector, these businesses saw the largest upticks:

• Building material and garden equipment/supplies dealers (up 5600 jobs)
• Gasoline stations and fuel dealers (up 4400)
• Sporting goods/hobby/musical instrument/book/ miscellaneous retailers (up 3300)

The biggest losers within the sector were warehouse clubs/supercenters/other general merchandise retailers (down 9700 jobs).

Overall, the biggest job gains occurred in leisure and hospitality, local government and health care, while employment in financial activities was the largest loser.

Also of note: as part of its most recent report, the Labor Department disclosed revised payroll figures for March and April and in both instances, the change was positive. Total nonfarm payroll employment for March was revised up by 29,000, to 214,000, and the change for April was revised up by 64,000, to 179,000. (Such revisions stem from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)

What do these numbers say about the economy and where it’s headed?  Much of the news coverage focused on whether the ongoing strength in the job market is likely to give the Federal Reserve Board the impetus to raise interest rates later this year.

But for now, “the labor market has shown signs of cooling in some areas, but from what we see on Main Street, many businesses are still operating, hiring selectively, investing cautiously and adapting to higher costs,” ConnectOne Bank Founder and CEO Frank Sorrentino told USA Today. “That points to an economy that is moderating rather than falling off a cliff.”