Employers Add 217,000 Jobs, Unemployment Rate Stays at 6.3 Percent

Friday, 06 Jun 2014 08:33 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
U.S. employers added 217,000 jobs in May, a substantial gain for a fourth straight month, fueling hopes that the economy will accelerate after a grim start to the year.

The May figure was down from 282,000 in April, a figure that the government revised slightly down, the Labor Department said Friday. But monthly job growth has now averaged 234,000 for the past three months, up sharply from 150,000 in the previous three.

The unemployment rate, which is calculated from a separate survey, remained 6.3 percent.

Editor's Note: Obama ‘Blunder’ Spawns Massive Profit Opportunity

The job market has reached a significant milestone: Nearly five years after the Great Recession ended, the economy has finally regained all the jobs lost in the downturn.

More job growth is needed, though, because the U.S. population has grown nearly 7 percent since then. Economists at the liberal Economic Policy Institute have estimated that 7 million more jobs would have been needed to keep up with population growth.

In addition, pay growth remains below levels typical of a healthy economy. Average wages have grown roughly 2 percent a year since the recession ended, well below the long-run average annual growth rate of about 3.5 percent.

In May, average hourly pay rose 5 cents to $24.38. That's up 2.1 percent from 12 months ago and barely ahead of inflation, which was 2 percent over the same period.

One reason for the weak pay growth: Many of the jobs added since the recession ended in June 2009 have been in lower-paying industries. A similar pattern was evident in May: Hotels, restaurants and entertainment companies added 39,000 jobs. Retailers gained 12,500. Manufacturers added 10,000 jobs, construction firms 6,000.

Still, the U.S. has now added more than 200,000 jobs for four months in a row — the first time that's happened since 1999.

"There's no doubt the rate of job creation has accelerated," said Dan Greenhaus, chief global strategist at BTIG LLC. according to Dan Greenhaus, chief global strategist at BTIG LLC. "But there remains a fair bit of slack in the labor market."

Many economists predicted late last year that growth would finally accelerate in 2014 from the steady but modest pace that has persisted for the past four years. But the economy actually shrank in the first three months of this year as a blast of cold weather shut down factories and kept consumers away from shopping malls and car dealerships.

The U.S. economy contracted at a 1 percent annual rate in the first quarter, its first decline in three years.

So far, employers have shrugged off the winter slowdown and have continued to hire. That should help the economy rebound because more jobs mean more paychecks to spend.

Most economists expect annualized growth to reach 3 percent to 3.5 percent in the current second quarter and top 3 percent for the rest of the year.

Recent economic figures suggest that growth is accelerating.

Auto sales surged 11 percent in May to a nine-year high. Some of that increase reflected a pent-up demand after heavy snow during the winter discouraged car buyers. But analysts predict that healthy sales will continue in coming months, bolstered by low auto-loan rates and the rollout of new car models.

Editor's Note: Over 50? Check Out These Free Government Giveaways...

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Fed's Kocherlakota Sees Inflation Below 2% for Next Four Years

Tuesday, 23 Sep 2014 15:57 PM

Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said he expects the inflation rate to remain below 2 . . .

Peter Morici: War on ISIS Will Be Boost to Defense Industry

Tuesday, 23 Sep 2014 15:11 PM

The world economy will not be hurt by the war against radicals like the Islamic State (ISIS), and in fact, some industri . . .

Fed's Bullard: It's 'Natural' to Drop Rate Pledge Next Month

Tuesday, 23 Sep 2014 14:42 PM

Federal Reserve Bank of St. Louis President James Bullard said the central bank may need to drop its pledge next month t . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved