The Employment Situation for May – More Bad News

The Bureau of Labor Statistics (BLS) released the Employment Situation report for May. Total nonfarm payrolls increased by 69 thousand in May with private payrolls adding 82 thousand and government taking away 13 thousand. The March and April estimates were revised downward by 49 thousand for those months, and the unemployment rate ticked up a tenth to 8.2 percent, based on a surge of 642 thousand in the labor force.

The recent weakness has drawn comparisons to the last two years when early strength gave way to mid-year deterioration. In 2010 the initial threat of a Greek default rattled global markets and began the now long simmering Euro zone crisis. In 2011 the Arab spring oil price spike and Japanese tsunami and nuclear accident disrupted economic activity and trade. Now, with another slowdown in US economic growth, limited room for additional monetary stimulus and even lower prospects for fiscal stimulus, recessions and deepening turmoil in the Euro zone, and slowing global economic growth, maybe there is no smoking gun explanation for the weakening labor market, just a hail of bullets.

Blaming the weather is just getting harder to do.

 

5 Responses to The Employment Situation for May – More Bad News

  1. […] week’s jobs report from the Bureau of Labor Statistics showed only a 69,000 increase in payroll employment for May. Analysts had been expecting a net increase of 150,000. The unemployment rate also increased to […]

  2. […] week’s jobs report from the Bureau of Labor Statistics showed only a 69,000 increase in payroll employment for May. Analysts had been expecting a net increase of 150,000. The unemployment rate also increased to […]

  3. […] later in this year given rising housing permit totals. But for the short-term, we know that the employment data for May was bad – with only 69,000 net jobs created. Thus, the future May JOLTS report will likely reflect bad […]

  4. […] later in this year given rising housing permit totals. But for the short-term, we know that the employment data for May was bad – with only 69,000 net jobs created. Thus, the future May JOLTS report will likely reflect bad […]

  5. […] jobs market report for May, showing only 69,000 net jobs created, continues to stand out as a sign that labor markets slowed in the spring. Other recent data […]

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