138,000 jobswere created in May, falling well below the expectations, while the unemployment rate fell to 4.3%, its lowest mark since 2001. The U6 rate fell to 8.4%, a number that includes those not actively looking for jobs as well as those working part-time. That is it’s lowest since 2007. The labor participation rate is down at 62.7% which means that workers that were sidelined did not return to the labor force. Looking at the adjusted numbers for March and April, average growth is about 130k jobs per month, well short of the 1 million jobs that President Trump has attempted to take credit for this year.
Wage growth also disappointed, with average hourly earnings rising at a 2.5 percent. The average work week was unchanged at 34.4 hours. As the economy continues to expand and comes closer to “full employment” wages should rise as companies stretch to attract new workers, yet this rapid wage growth is not taking place.