May Payrolls Rise By 139K, Beating Estimates, But Report Shows Sweeping Labor Market Weakness

The US added 139,000 jobs in May, above the median consensus of 126,000, but below last month's print. However, historical data points during the Trump administration were revised lower, with April revised 30,000 lower and March revised 65,000 lower. The unemployment rate remained unchanged at 4.2%, and the number of unemployed people changed little over the month. Among major worker groups, the unemployment rates showed little or no change over the month. The labor force declined by 600,000, and the number of employed workers plunged by 696,000. The number of people jobless for less than 5 weeks increased, while the number of long-term unemployed decreased. The employment-population ratio declined, and the labor force participation rate decreased. Average hourly earnings rose 0.4% month-over-month and 3.9% year-over-year, above expectations. The jobs added were mainly in healthcare, leisure and hospitality, and social assistance, while federal government employment continued to decline.