Keeping you up to date on the latest data releases.
Total nonfarm payroll employment rose by 175,000 and the unemployment rate ticked up to 7.6 percent in May, with the payroll numbers coming in slightly above the forecast of 168,000. On the household side of the report, the labor force participation rate increased slightly by 0.1 percentage points to 63.4 percent, but is still 0.2 percentage points below its January reading. The employment-to-population ratio was unchanged from April at 58.6 percent and has shown little movement over the past year. Overall this was a moderately positive report, with the unemployment rate increasing partially due to an increase in the labor participation rate as workers re-enter the labor force. Total number of employed increased by 319,000, indicating improved traction within the labor market.
As for the establishment side of the report, revisions to both March and April have subtracted a total of 12,000 more jobs than previously estimated as March was revised up 4,000 and April revised down 16,000 to 142,000 and 149,000, respectively. Over the past 12 months, employment growth has averaged a total of 172,000 jobs per month. Professional and business services continue to show solid improvement, adding 57,000 jobs, as well as food services and drinking places up 38,000 jobs, retail trade up 28,000 jobs, and healthcare up 11,000 jobs. Government continues to lead employment declines, falling 14,000 for the month and down 45,000 over the past three months. The total private diffusion index increased 4.2 percentage points to 59.8 and remains above the growth threshold of 50. The average workweek for all employees increased by 0.1 hours to 34.5 hours, while the average hourly earnings for all employees rose by one cent to $23.89.