WASHINGTON—The latest numbers on job creation and unemployment are seen as generally good, especially for younger women, according to one credit union economist.
The Bureau of Labor Statistics late last week reported non-farm payrolls increased 559,000 in May, and the unemployment rate fell to 5.8%.
“This was a generally encouraging report as jobs gains improved significantly over the prior month,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Women under age 35 saw a large share of those gains, which may indicate that childcare issues are abating.”
Of note, April's number was revised up slightly to a gain of 278,000.
Average hourly earnings rose 15 cents in May. Year-over-year wage growth was 2%. The labor force participation rate declined 0.1% to 61.6%, which is still down significantly from 63.3% in February 2020, Long said.
Hospitality Industry Strengthening
Results among the major industries was mostly positive. Leisure and hospitality gained 292,000 jobs, followed by 87,000 jobs in the education and health services sector, and 67,000 in the government sector. Construction shed 20,000 jobs.
“On the downside, labor force participation dropped slightly,” concluded Long. “Overall, this report should quell fears of a major slowdown, but it also highlights that the labor market will take substantial time before a full recovery is achievable.”