Lower-Than-Expected May Jobs Numbers Missed Expectations; Unemployment Rate Remains at 50-Year Low

  • The Department of Labor reported that May only saw 75,000 jobs added to the economy, which was much lower than the estimated 180,000. However, the unemployment rate remained at 3.6%, a historic 50-year low.
  • Additionally, March and April jobs numbers were revised down. March’s numbers were revised down from 189,000 to 153,000 and April from 263,000 to 224,000.
  • Average hourly earnings increased 3.1% from this time last year but were lower than the 3.2% expected.
  • 2019’s payroll gains have averaged 164,000 while 2018’s average was 223,000.
  • With job creation missing expectations, this bolsters the case for the Fed to cut interest rates to boost the economy and create new jobs.
  • Earlier this week, ADP reported that only 27,000 jobs were added to private payrolls in May.
  • According to reports: “A particular soft spot is in the manufacturing sector. In light of the threat of trade wars with China and Mexico and increasing tariffs, hiring was put on hold due to future uncertainty.”
  • Further, according to a Bloomberg report, “25% of retirees were involuntarily forced into retirement due to lack of available work.”
  • According to one analyst: “There will be a large number of people underemployed, stuck in gig work or unable to find an appropriate-paying job.”

Reference Links

  • Breitbart: The U.S. Created Just 75,000 Jobs in May, Much Worse Than Expected READ
  • USA TODAY: Economy added just 75,000 jobs in May, strengthening case for Fed interest rate cut READ
  • Bankrate: U.S. economy adds only 75,000 jobs, unemployment rate holds at 3.6% READ
  • Forbes: Job Growth Dramatically Decreased And Disappointed With Only 75,000 News Jobs Added In May READ

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