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Enviado: 3/6/2005 13:27ECONOMIC REPORT: Payroll growth slows to 78,000 in May; U.S. May unemployment rate falls to 5.1%
By Rex Nutting, MarketWatch
Last Update: 8:31 AM ET June 3, 2005
WASHINGTON (MarketWatch) - Hiring in the United States slowed in May to weakest in nearly two years, the Labor Department reported Friday.
Nonfarm payrolls increased by 78,000, the lowest since August 2003, according to a survey of business establishments.
Meanwhile, the unemployment rate slipped to 5.1% from 5.2%, based on a separate household survey. It's the lowest unemployment rate since September 2001.
Economists were expecting much stronger job growth in May, forecasting an average gain of 186,000, according to the survey conducted by MarketWatch.
The weak hiring will likely encourage bond bulls, who have pushed the yield on the benchmark 10-year note to 3.90% this week. However, the Federal Reserve is likely to remain on its steady path of "measured" interest rate hikes at its meeting at the end of June, economists say.
Payroll growth in March was revised down by 24,000 to 122,000, while April payroll gains were unrevised at 274,000.
Average hourly wages increased 3 cents, or 0.2%, to $16.03 in May. Wages are up 2.6% in the past year.
The average workweek was unchanged at a revised 33.8 hours. Total hours worked in the economy increased 0.1%.
Hiring weakened across most sectors in May. Private sector hiring slowed to 73,000 in May from 261,000 in April. Factory employment fell 7,000, the 10th decline in the past 12 months. Construction jobs increased by 20,000.
Service-sector employment rose by 64,000. Most of the gains were in health services, which rose by 33,000. Retail employment increased by 11,000. Temporary help jobs fell by 4,000.
Among 278 industries, 55.8% were hiring in May, down from 63.7% in April. Among 84 manufacturing industries, 46.4% were hiring in May, down from 49.4% in April.
The picture painted by the separate household survey was brighter, with employment rising by 376,000. Unemployment fell by 16,000 to 7.65 million. The labor-participation rate rose to 66.1% from 66%.
By Rex Nutting, MarketWatch
Last Update: 8:31 AM ET June 3, 2005
WASHINGTON (MarketWatch) - Hiring in the United States slowed in May to weakest in nearly two years, the Labor Department reported Friday.
Nonfarm payrolls increased by 78,000, the lowest since August 2003, according to a survey of business establishments.
Meanwhile, the unemployment rate slipped to 5.1% from 5.2%, based on a separate household survey. It's the lowest unemployment rate since September 2001.
Economists were expecting much stronger job growth in May, forecasting an average gain of 186,000, according to the survey conducted by MarketWatch.
The weak hiring will likely encourage bond bulls, who have pushed the yield on the benchmark 10-year note to 3.90% this week. However, the Federal Reserve is likely to remain on its steady path of "measured" interest rate hikes at its meeting at the end of June, economists say.
Payroll growth in March was revised down by 24,000 to 122,000, while April payroll gains were unrevised at 274,000.
Average hourly wages increased 3 cents, or 0.2%, to $16.03 in May. Wages are up 2.6% in the past year.
The average workweek was unchanged at a revised 33.8 hours. Total hours worked in the economy increased 0.1%.
Hiring weakened across most sectors in May. Private sector hiring slowed to 73,000 in May from 261,000 in April. Factory employment fell 7,000, the 10th decline in the past 12 months. Construction jobs increased by 20,000.
Service-sector employment rose by 64,000. Most of the gains were in health services, which rose by 33,000. Retail employment increased by 11,000. Temporary help jobs fell by 4,000.
Among 278 industries, 55.8% were hiring in May, down from 63.7% in April. Among 84 manufacturing industries, 46.4% were hiring in May, down from 49.4% in April.
The picture painted by the separate household survey was brighter, with employment rising by 376,000. Unemployment fell by 16,000 to 7.65 million. The labor-participation rate rose to 66.1% from 66%.