US employers add modest 138K jobs; rate dips to 4.3 percent

While last month's job gains could still be sufficient for the Federal Reserve to raise interest rates this month, the modest increase could raise concerns about the economy's health after growth slowed in the first quarter.

The U.S. economy added 138,000 jobs last month, less than the 174,000 jobs gained in April and lower than expected. That was down a bit from April and was modestly below economists' expectations.

But dig deeper into the report and the picture gets uglier.

The government said the job figure was well below the average monthly gain of 181,000 during the prior 12-month period.

Despite continued steady job growth in 2017, earnings have yet to break out of this mid-two percent pace.

Then there is the retail sector.

Of the 211,000 jobs added in April, more than a quarter were in the generally lower-paying leisure and hospitality industry - hotels, restaurants and amusement parks. And it is possible that some stores want to hire but are struggling to find workers willing to accept retail wages at a time when jobs are relatively plentiful.

"The loss of manufacturing jobs in May is a stark reminder of the challenges that face factory workers", Scott Paul, president of the Alliance for American Manufacturing, said in a statement, calling on Trump and Congress to address the USA trade deficit.

But because most of its positions are entry-level jobs geared for younger workers, the company has been able to pay them in part through bonuses rather than hourly raises.

The 2016 May jobs report stunned everyone when the US only added 38,000 jobs (it was later revised up a little). Hiring was still enough to help keep pushing unemployment lower. It's too soon to worry, but not too soon to start paying attention.

Economists surveyed by Reuters expected nonfarm payrolls to grow by 185,000 and the unemployment rate to hold steady at 4.4 percent. That might sound like good news.

Investors were also keeping an eye on the underemployment rate, which takes not only the official unemployment rate but adds those who are working part-time but would prefer full-time work. But the rate declined mainly because people stopped looking for work last month and so were no longer counted as unemployed. The highest employment rate was found in El Centro, California at 19.2 percent. The labour force participation rate was 62.7%, retreating from earlier this year.

A one- or two-month drop in the labor force isn't necessarily cause for alarm. Some economists pointed out that the retirement of baby boomers would continue to press down labor-force participation.

The dollar hit a seven-month low against a basket of currencies on the diminishing rate hike prospects in the second half of the year.

Despite the slower job growth, the historically low jobless rate might give the Federal Reserve the leeway to increase interest rates. "Today's numbers probably won't stop the Fed from raising rates this month".

Related:

  • Job creation slumps in May; unemployment rate at 4.3 percent

    The Brent futures LCOc1 fell 0.8 percent to $50.24 per barrel, near its three-week low of $49.81 set on Wednesday. Against the yen, the USA dollar fell to two week lows and last changed hands at 110.44 yen, down 0.8 per cent.
    Arcade Fire's 'Everything Now' has been produced by Daft Punk's Thomas Bangalter

    Arcade Fire's 'Everything Now' has been produced by Daft Punk's Thomas Bangalter

    The production credits on the track also mentions Thomas Bangalter on synths, as well as co-producer along with Stevey Mackey . Elsewhere, fan speculation is mounting that Arcade Fire could release a new single this week.
    Johanna Konta crashes out of French Open

    Johanna Konta crashes out of French Open

    The 18th seed, fired a total of 20 aces, including six in the first set alone, which he raced through in 30 minutes on Tuesday. Konta, 26, is yet to win a match in the main draw at Roland Garros after three successive first-round losses.
  • Kushner Asked to Lay Low After Reports Connecting Him to Russia Probe

    Kushner Asked to Lay Low After Reports Connecting Him to Russia Probe

    Neither the meeting nor the Americans involved were under US surveillance, officials told the Post . Some also questioned whether his security clearance needs to be revoked.

    Trump budget chief defends plan in face of opposition

    Nonpartisan experts say the gap between the White House's estimates and the Congressional Budget Office's is "the largest on record".

    Mosul civilians in 'grave danger' as ISIS resists Iraqi forces

    The move is an abrupt shift from past instructions that have mostly told civilians to stay in place until the fighting is over. The enclave covers mainly the Old City centre and three adjacent districts alongside the western bank of the Tigris river.
  • Gunshots and explosions at Philippine mall

    State Department official said it is not aware of any American citizens affected "but we are continuing to gather information". Police cordoned off the area near the Ninoy Aquino International Airport shortly after the attack began, according to the AP.

    Mother of Tamir Rice relieved officer fired

    In 2015, a grand jury declined to criminally charge Loehmann in the Rice shooting. "We still need accountability". Garmback was suspended for 10 days for violating a tactical rule for his driving that day.
    Merkel: Europe must stay united in face of ally uncertainty

    Merkel: Europe must stay united in face of ally uncertainty

    In April, Trump was said to be considering an executive order which would pull the United States out of NAFTA. Trump tweeted on Saturday that he would "make a decision" about the agreement next week.
  • DHS chief says reported Russian back-channel not a 'big deal'

    DHS chief says reported Russian back-channel not a 'big deal'

    May-Kelly said her parents and mother were. " #FakeNews is the enemy!" the United States leader wrote , spelling errors and all. Congressional Democrats are demanding to hear directly from Kushner over allegations of the proposed secret back-channel.

    Virat Kohli only Indian in top 10 of ICC ODI rankings

    Joe Root's shot was then perhaps a signal of England's mis-adventure when he missed Parnell's full-length inswing to be plumb lbw. Best of them all arguably was Faf du Plessis ' head-high take at second slip to account for Jos Buttler .
    U.S., Japan agree to enhance North Korea sanctions: White House

    U.S., Japan agree to enhance North Korea sanctions: White House

    Abe said he meant to use the G7 summit to underscore the danger posed by the unpredictable regime in North Korea. President Donald Trump for about 55 minutes Friday before the summit began.

Comments

Latest news

England's sublime batting secures opening Champions Trophy victory
Earlier, Bangladesh Opener Tamim Iqbal hit a stylish hundred, guiding Bangladesh to a competitive 305 for six against England . While Soumya Sarkar fell for 28, Tamim Iqbal batted superbly for his 128 and put Bangladesh in a commanding position.

Effective Handwashing Does Not Require Hot Water
The washed their hands for ten seconds at a time in water at 15.5, 26 and 38°C (60, 79 or 100℉) using varying amounts of soap. And they also found only small benefits from using an anti-bacterial formula compared with an ordinary bar of soap.

UN council to vote Friday on blacklisting more North Koreans - diplomats
The steps freeze any funds the individuals or companies may have in the United States, and bar Americans from dealing with them. This week, after world leaders again urged Kim to abandon its nuclear program, North Korea conducted another missile test.

Putin: Russian state has never been involved in hacking
Putin said that hackers "are like artists" who choose their targets depending how they feel "when they wake up in the morning". Russian President Vladimir Putin , right, shakes hands with India's Prime Minister Narendra Modi prior their talks at the St.

Cavs the champs but Warriors the favorites in the NBA Finals
James has been even better, scoring 32.5 points on almost 57 percent shooting, adding eight rebounds and seven assists per game. As for looking at the regular-season series between the Cavs and Warriors , a 1-1 split, there's no much to glean from there.

LIGO detects gravitational waves for third time
Another line of LIGO evidence supports the idea that globular clusters play a role in the saga of dual heavy black holes. LIGO's second detection featured two smaller black holes, 14 and eight times the mass of the sun ( SN: 7/9/16, p. 8 ).

'He's human': Cavs coach defends LeBron after 'weird' loss
The loss ended the champions' 13-game post-season winning streak. "I mean, listen, you've got to be smart about it", James said. The Celtics managed to stabilize the game and Bradley's jumper cut the lead to 26-19 with 2:45 left in the first quarter.

For first time since 1973, Miami baseball not in NCAAs
North Carolina (47-12), which missed the national tournament the last two years, is No. 2 after winning 18 of its last 22 games. DE went 4-0 at the Colonial Athletic Association tournament to capture its first conference title in the CAA .

Apple's Siri-powered smart speaker will reportedly debut next month
The final piece of the puzzle, of course, is to try and lock users further into Apple's ecosystem of products and services. This year's developers conference will be the first since 2013 to introduce new hardware.

Disruptive passenger tries to enter cockpit on Malaysia Airlines flight
Passengers were screened upon disembarkation and put up at hotels, and will be offered seats on alternative flights. Malaysia's deputy transport minister, Abdul Aziz bin Kaprawi, told AFP the item was not a bomb, but a " powerbank ".

Tubelight: Salman Khan "The Painter" Creates A Masterpiece On The Sets
Apparently, Shah Rukh Khan will be seen in a cameo as a magician, who helps Salman's character discover his talents. The film is directed by Kabir Khan and also stars Chinese star Zhu Zhu , Zeeshan Ayyub and late actor Om Puri .

Have become member of every family: Modi
Prime Minister Modi will depart for Hotel Adlon Kempinski at Palaisaal to attend the Indo-German Business Summit 2017. To our mind, terrorism is the gravest challenge facing humanity.

Ariana Grande Has Released an Official Statement on Manchester Arena Bombing
Greater Manchester police said after this morning's raids that they were "keeping an open mind" in a "fast-moving investigation". The Conservatives and Labour are to resume local general election campaigning on Thursday, and national campaigning on Friday.

All the style from Cannes Film Festival opening night
She paired the one shoulder, thigh-high slit gown with Chloe Gosselin's platform shoes and De Grisogono diamond earrings and cuff. She didn't seem too upset by the fashion faux-pas, and was later seen partying the night away with her fellow models.

White House silent on reported Kushner 'communications channel' with Moscow
Trump asked top intelligence officials to defend him against claims that his campaign collaborated with the Russian government. Kushner is a senior adviser to the President and is influential in policy matters. "Kushner not going anywhere, I'm told".

Other news