Filed under: Bureaucracy, Economics, Economy, Unemployment | Tags: May Jobs Report, US Labor Department, Worst Report Since 2010
The Labor Department announced that the pace of hiring in the economy slowed sharply in May. U.S employers added a seasonally adjusted 38,ooo jobs in May — the worst monthly performance since September 2010, when the economy shed jobs. The forecast by economists was for an increase of 158,000, so these numbers were a big disappointment. Over the last three months, employment growth has averaged 116,000 —a major slowdown from the 210,000 average during the past 12 months.
However, some 31,500 Verizon Communications Inc. workers went on strike last month in a labor dispute that affected the numbers. Verizon has reached a deal with the union, and workers have returned to their jobs. If the contract is ratified, the June employment report should look better.
The unemployment rate was 4.7% which means that 7.4 million Americans who wanted a job were out of luck — but it meant that more people were dropping out of the workforce. The underemployment rate, people looking for work, stuck in part time jobs or who have been discouraged about finding a job held steady at 9.7% for May. But the share of Americans who were actually participating in the workforce fell to 62.6%. Here’s the full report from the Wall Street Journal + lots of charts if you prefer a visual.
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