The U.S. Bureau of Labor Statistics reports in its employment situation release this morning that +175k jobs were added in May. This is slightly better than what economists expected for the month and better than April’s downward revised +149k.
The manufacturing industry is the bad news in this month’s release, reporting its third consecutive month of decline. Most other industries generally performed inline with recent history.
- Mining and Logging: +0k payrolls compared to -4k last month.
- Construction: +7k payrolls compared to -2k last month.
- Manufacturing: -8k payrolls compared to -9k last month.
- Wholesale Trade: +7.9k payrolls compared to +3.9k last month.
- Retail Trade: +27.7k payrolls compared to +19.9k last month.
- Transportation: -3.9k payrolls compared to 5.9k last month.
- Information Services: +3k payrolls compared to -7k last month.
- Financial Activities: +4k payrolls compared to +9k last month.
- Professional Services: +57k payrolls compared to +60k last month.
- Education: +26k payrolls compared to +37k last month.
- Leisure and Hospitality: +43k payrolls compared to +39k last month.
- Other Services: +13k payrolls compared to +3k last month.
- Government: -3k payrolls compared to -8k last month.
The unemployment rate (U-3) increased to 7.6% from 7.5% in May, while the broader unemployment rate (U-6) ticked down to 13.8% from 13.9%.
The labor force participation rate increased to 63.4% from 63.3% in April.
The employment-population ratio was unchanged at 58.6%.
I will note again as I did last month that the current labor force participation rate is essentially at the lowest it has been since April of 1983.
The labor force participation rate among all men increased to 70.0% in May compared to 69.8% in April. The labor force participation rate among all women increased to 57.3% from 57.2% in April.
The labor force participation rate by age group:
- 16 to 19: 35.0% compared to 33.8% last month.
- 20 to 24: 70.1% compared to 70.9% last month.
- 25 to 54: 81.3% compared to 81.1% last month.
- 55+: 40.5% compared to 40.4% last month.
Among production and non-supervisory employees, average weekly hours worked increased to 33.8 from 33.7 in April. Average hourly earnings ticked up to $20.08 from $20.06 last month, bringing average weekly earnings to $678.70 from $676.02 in April.
The average duration of unemployment increased in April to 36.9 weeks compared to 36.5 weeks in April.
I always include a longer time frame on this chart though to provide some context of just how bad this recession has been for the long-term unemployed. This is still the leading employment indicator that shows how “this time is different.”
Percent of unemployed by duration:
- Less than 5 weeks: 23.2% compared to 21.3% last month.
- 5 to 14 weeks: 22.8% compared to 24.5% last month.
- 15 to 26 weeks: 16.7% compared to 16.9% last month.
- 27 weeks and over: 37.3% compared to 37.4% last month.
Unemployment grew significantly in the 35 to 44 age bracket this month. The unemployment rate of age groups in May:
- 16 to 17: 27.5% compared to 27.3% last month.
- 18 to 19: 22.4% compared to 22.6% last month.
- 20 to 24: 13.2% compared to 13.1% last month.
- 25 to 34: 7.2% compared to 7.4% last month.
- 35 to 44: 6.2% compared to 5.8% last month.
- 45 to 54: 5.9% compared to 5.9% last month.
- 55+: 5.3% compared to 5.5% last month.
The unemployment rate for men increased to 7.9% from 7.7% in April. The unemployment rate for women decreased to 7.1% from 7.3% last month.
The unemployment rate among all veterans in May was 6.6%, up from April’s 6.2%.
The unemployment rate among male veterans increased to 6.7% from 6.4% last month. The wildly volatile female veteran unemployment rate was 6.0%, down from the 4.7% it was last month.
The unemployment rate decreased for 2 of the 4 races tracked by the BLS in May:
- White: 6.7% compared to 6.7% last month.
- Black: 13.5% compared to 13.2% last month.
- Asian: 4.3% compared to 5.0% last month.
- Hispanic: 9.1% compared to 9.2% last month.
Lastly, unemployment rates by education level:
- Less than a high school diploma: 11.1% compared to 11.6% last month.
- High school graduates: 7.4% from 7.4% last month.
- Some college or Associate degree: 6.5% from 6.4% last month.
- Bachelor’s degree or higher: 3.8% from 3.9% last month.
Full table with changes: