Although projected to stay on par with March and April job numbers, the May jobs report released last Friday showed one of the lowest job gains in almost six years. Only 38,000 jobs were added to nonfarm payrolls compared to the projected 160,000, coming in lower than even the worst prediction from a Bloomberg survey. The last comparable jobs report was in December 2010, eerily similar to the trends seen after the 2008 recession.
A rise in wages was the only bright spot in an otherwise lackluster report. Wages rose 0.2% since April and by 2.5% year over year, staying true to the projections and providing a much needed sign for a healthy economy.
Revisions to March and April show a combined loss of 59,000 jobs than previously reported, indicating that the pace of hiring has slowed down over the recent months. However when factoring in the drop in the unemployment rate, the low amount of jobs added might also be caused by a smaller pool of new workers willing and able to do work.
Employment in the financial activities sector changed little from April besides the unemployment rate falling to 1.8% from 2.7% in April. Over the past six months, hiring in financial services has stayed steady and is anticipated to continue its streak throughout the summer months.
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