U.S. job growth slowing, firms await reforms

10:45am

10:45am

The Department of Labor also recently released more specific data about the job markets different US cities are experiencing. Yet economists said the drop was due in part to a contraction in the labor force, since the unemployment rate measures only those who are actively looking for work but can't find it. The consensus expectation of economists is that the Labor Department will report that employers added 176,000 jobs, according to a survey by FactSet, a data provider.

Economists have expected wage gains to increase as the job market got tighter, but average hourly earnings increased just four cents in May to $26.22. Some say the U.S.is not yet at full employment, because workers still are not seeing a significant pickup in wage growth.

Temporary workers are more consistently demanding higher wages and full-time work, said Rachel Chapman, owner of an Express Employment Professionals staffing office in Huntsville, Ala. Nationally, the workweek for construction laborers rose by half an hour in April, and retained that level last month.

The historically low unemployment rate likely gives the Fed leeway to increase the central bank's benchmark interest rate this month.

The department's latest employment report suggests that eight years after the Great Recession, job growth is slowing after an extended period of gains.

But some sectors were shedding positions, with the struggling retail sector employing 6,100 fewer workers, and automakers losing 1,500, amid declining new auto sales. The labor force participation rate was 62.7%, retreating from earlier this year.

"We're clearly bringing people back into the job force", Cohn said.

The figures largely represent an aging population of Americans are increasingly retiring, but it could hit that modest wage growth is failing to pull some potential workers off the sidelines.

The past two months of job growth were also lower than originally reported, with March revised down to just 50,000 jobs added and April down to 174,000.

Economists surveyed by Bloomberg had expected an increase of 180,000 in non-farm payrolls, which would have been in line with average monthly gains seen over the past year.

The U.S. labor market has been one of the brightest spots in a long recovery marked by slow economic growth.

The labor market was largely expected to return to form last month after volatile weather made for sharp gyrations the first five months of the year.

Despite the slowdown in job growth last month, the USA economy is running neither too hot nor too cold, with growth holding at a tepid but far from recessionary 2 percent annual rate. Meanwhile, better-paying work in fields from construction to health care continues to expand, which could support firmer wage growth this year. Retailers and manufacturers shed jobs and leisure and hospitality, a category that includes restaurants, increase at a slower rate. Employment in manufacturing also dipped.

A broad measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, fell two-tenths of a per centage point to 8.4 per cent, the lowest since November 2007.

Recommended News

  • Sourdough or white? Trust in gut reaction to provide the answer

    Sourdough or white? Trust in gut reaction to provide the answer

    Bridget Benelam, from the British Nutrition Foundation, highlighted that it contains more fibre than white. However, a new study found no overall benefit at the community level of one type of bread over another.
    London attack: 12 arrested in Barking after van and knife attack

    London attack: 12 arrested in Barking after van and knife attack

    She said police know the identity of the three attackers but will not release them yet because of the ongoing investigation. Seven people were killed and at least 48 others were sent to hospital.

    Putin ridicules claims of meddling in US vote

    Ambassador Sergey Kislyak's meetings with members of Trump's team have been a focus of the congressional investigation. The Kremlin has sought to ridicule Americans for what Putin and his aides have dismissed as a witch hunt.
  • Grande returns to Manchester to honor victims with benefit

    According to a set list obtained by ET, Grande and Miller are set to take the stage together at the end of the three hour concert. Throughout the night Grande performed her hits Be Alright and Break Free, as well as her duet Better Days with Victoria Monet.

    Donald Trump's Middle East Comment in Israel

    The Palestinian president raised the issue of Palestinian detainees, who have been holding a hunger strike for more than a month. Both sides are wary of being accused of resisting Trump's peace efforts or being cast as obstructing the resumption of talks.
    Mumbai Indians claim IPL title after dramatic finish against Pune

    Mumbai Indians claim IPL title after dramatic finish against Pune

    With just 11 runs needed in the last over for victory, skipper Rohit Sharma handed over the ball to Australian pacer Johnson. Having led the Mumbai Indians to an unprecedented third IPL title, Rohit Sharma seems to be on cloud nine at the moment.
  • Trump Can Be His Own Worst Enemy

    Trump Can Be His Own Worst Enemy

    Trump, naturally, misunderstood the comment and assumed Khan was saying that the attack itself wasn't a very big deal. We know that judges - including, I suspect, Supreme Court Justices - will seize on anything to resist this president.

    Fastenal Company (NASDAQ:FAST) Buckles Under The Trend Lines

    Brokerage houses, on average, are recommending investors to hold The Chemours Company (CC)'s shares projecting a $47 target price. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link .
    Akzo responds to PPG - after the takeover battle ends

    Akzo responds to PPG - after the takeover battle ends

    The decision comes after PPG failed to gain an extension from Dutch authorities on Thursday's deadline to make a formal offer. The group added that it made a final attempt at engaging with AkzoNobel's board last week, but did not receive a response.
  • Philippine police say casino attacker was indebted gambler

    The ISIS terrorist group also tried claiming responsibility for the shooting, but authorities believe evidence suggests otherwise. The man responsible for the deadly Manila casino attack was a heavily-indebted Filipino hooked on gambling, police have said.

    British PM, rival face angry voters as election nears

    It was that sort of rhetoric, Labour leader Jeremy Corbyn responded, that had created "a toxic climate" for negotiations. The Opinium poll for the Observer newspaper suggested May was set for a substantial parliamentary majority on June 8.
    Valverde exits Athletic amid Barcelona links

    Valverde exits Athletic amid Barcelona links

    The 53-year-old Valverde reportedly will sign a two-year contract with Barcelona , with an option for a third season. I have had a lot of doubts, but my work here is done.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.