Statement on the Employment Situation in May

 

WASHINGTON, DC – Jason Furman, Chairman of the Council of Economic Advisers, issued the following statement today on the employment situation in May. 

Summary: The economy added jobs in May at a considerably slower pace than in recent months as unemployment fell and wage growth continued its pickup.

The economy added 38,000 jobs in May, considerably below both expectations and the pace of growth in recent months, with volatility in monthly data and a temporary strike in the telecommunications industry contributing to the disappointingly low number. U.S. businesses have now added 14.5 million jobs over 75 straight months of private-sector job growth. At the same time, the unemployment rate fell to 4.7 percent in May, its lowest level since November 2007. The labor force participation rate ticked down, though it remains at the same level as in June 2015. Importantly, average hourly earnings for private employees have increased 3.2 percent at an annual rate so far in 2016. In light of both volatility and temporary factors in monthly jobs data, it is important to view this month’s report in the context of both other recent data–including recent trends in consumer spending, vehicle and housing sales, and initial claims for Unemployment Insurance—as well as the longer-run trend in job growth. So far in 2016, payroll growth has averaged 150,000 jobs a month, well above the pace necessary to maintain a low and stable unemployment rate. This month’s report is a reminder of the important work that remains to sustain faster growth in jobs and wages, including investing in infrastructure and job training, implementing high-standards trade agreements like the Trans-Pacific Partnership, and raising the minimum wage.

You can view the full statement here. 

Source: The White House, Office of the Press Secretary