Health care and leisure and hospitality lead the employment gains.
The U.S. economy added 139,000 new jobs last month, surpassing economists’ expectations and indicating that the U.S. labor market remains in a robust position.
According to the Bureau of Labor Statistics, the unemployment rate held steady at 4.2 percent for the third consecutive month.
The median estimate suggested 130,000 new jobs and a 4.2 percent jobless rate, FactSet Insights reported ahead of the May employment figures.
Average hourly earnings rose 0.4 percent monthly, higher than the consensus estimate. On a year-over-year basis, average hourly earnings were unchanged at a higher-than-expected 3.9 percent.
Shortly after the employment data were released, President Donald Trump touted the May jobs report.
“America is hot! Six months ago it was cold as ice! Border is closed, prices are down. Wages are up!” Trump wrote in all caps in a Truth Social post.
The labor force participation rate dipped to 62.4 percent from 62.6 percent. Average weekly hours were also flat at 34.3.
Health care led last month’s employment gains, with payrolls rising by 62,000 and above the 12-month average of 44,000.
Employment in leisure and hospitality surged by 48,000, followed by social assistance (16,000).
Federal government employment fell by 22,000 and is down by 59,000 since the beginning of the year. Manufacturing payrolls also slumped by 8,000.
The household portion of the nonfarm payrolls report, which removes duplication, revealed a sharp decline of 696,000 new jobs.
Full-time employment decreased by 623,000, while part-time jobs edged up by 33,000. The number of people working two or more jobs decreased for the second straight month, declining by 283,000.
In a sign that individuals who have been out of work for 27 weeks or more may be finding employment, the number of long-term unemployed fell by 218,000 to 1.5 million.
The divergence between U.S.- and foreign-born workers has been a key feature in the labor market over the past several years. Last month, both categories of workers shed jobs.
The number of employed native-born workers declined by 444,000, and the number of employed foreign-born workers fell by 224,000.
Revisions were also sizable, with April’s number revised lower by 30,000 to 147,000. The March reading was also adjusted down by 65,000 to 120,000.
By Andrew Moran
