It’s that time of month again! The first Friday of the month only means one thing: The monthly jobs report was issued by the Department of Labor and per the numbers, the unemployment rate rose from 7.5 percent to 7.6 percent. Employers added 175,000 jobs in May which was better than originally anticipated. As pointed out by USA Today, economists originally estimated the magic number was going to be 165,000 new jobs.
Technically, businesses added 178,000 jobs whereby federal, state and local governments cut 3,000. Job gains held steady in professional and business services, leisure and hospitality and retail.
Per the piece, Patrick O’Keefe, a former deputy assistant labor secretary, indicated employers are still cautious. “They’re hiring when they have orders and business sufficient to justify it but they’re not anticipating.” As for what we can expect the rest of the year, he anticipates monthly job growth to hover around 180,000 jobs.
Good news emerged from the report that shouldn’t be overlooked. Temporary workers increased by 26,000 and this signals a sign of hiring more full-time employees.
In addition, the underemployment rate decreased. That is, this category encompasses people who stopped looking for work, part-time workers who prefer full-time jobs, and the unemployed. This rate dropped by one-tenth of a percentage point moving the needle slightly from 13.9 to 13.8.