Friday, June 1, 2007

Payrolls Increase 157,000

From the BLS:

Nonfarm payroll employment increased by 157,000 in May, and the unemployment rate was unchanged at 4.5 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Health care and food services added jobs,
while employment declined in manufacturing. Average hourly earnings rose by 6 cents, or 0.3 percent, over the month.

Let's look deeper into the numbers:

Goods producing industries lost 19,000, all in manufacturing. There were 0 losses in construction. I have been wondering for a few months if the increase in nonresidential construction is absorbing residential housing jobs. This may be confirmation of that idea.

Education and health care had an increase of 5,000. This area of job creation has been consistently solid for the last few years, so this increase comes as so surprise.

Leisure and hospitality has an increase of 46,000 jobs. Think bartenders and waitresses here.

Professional and service jobs increased 32,000 -- a pretty good increase.

This is a good report which the market should like.

However --

I will also add the BLS has continually revised these numbers as time progresses. As a result these numbers could change pretty drastically.