This morning, the Bureau of Labor Statistics reported on the May 2016 Unemployment Situation. Last month, 38,000 nonfarm* jobs were added to the US economy. This growth is considerably lower than the pace of growth in recent months. The slow down could be due to strikes in the telecommunication industry that are expected to be resolved in June. The May 2016 unemployment situation reported a 4.7% unemployment rate, despite slowing job growth.
A noteworthy statistic coming out of May’s unemployment report is that the business sector added jobs for the 75th month in a row. This is the longest streak on record. Private employment rose by 25,000 jobs in May and has added 14.5 million jobs over the last 75 months.
Construction jobs decreased by 15,000 which is the first decline in several months. 163 thousand jobs have been added since May of 2015. Earlier this week, the U.S. Census Bureau reported that construction spending grew nearly 9% for the first four months of this year. Construction spending is continuing to rise, and construction employment rates have not been keeping up. We have heard about the labor shortage across the construction industry and with employment rates slowing and construction spending growing, it seems that the labor shortage will continue, at least for the next several months.
*Nonfarm- A statistic by the U.S. Bureau of Labor Statistics representing the total number of paid U.S. workers of any business, excluding: general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals and farm employees
For more information, visit The Bureau of Labor Statistics website.
Related- April Unemployment News