At 4.3 percent, the unemployment rate is the lowest since 2001. However, 429,000 workers left the labor force in May. The labor force participation rate is 62.7 percent and the employment-to-population ratio is 60.0 percent.
“The May jobs report was a disappointment as job growth failed to meet expectations and revisions reduced gains from prior months,” National Association of Federally Insured Credit Unions Chief Economist and Director of Research Curt Long said. “The participation rate fell, and wage growth showed no improvement.”
While he still expects the Fed to raise interest rates when it meets June 13-14, the sluggish growth may give some on the Federal Reserve Board pause.
“Despite the poor May returns, the Fed’s view of the labor market remains strong enough to support a quarter-point rate hike later this month,” he said. “But the slowing pace of job growth combined with still-muted wage growth may lead some officials to downgrade their expectations for further policy tightening in the second half of the year.”
U.S. Sen. Martin Heinrich (D-NM), ranking member of the Joint Economic Committee, said President Trump’s policies have hurt job growth.
“After more than 130 days in office, President Trump has yet to show us he is serious about creating jobs and raising wages across the country. Rather, he has pushed for policies that will only hinder economic growth: a disaster of a health care plan that will kick millions off their health insurance, a budget that threatens working families, and reckless practices by his administration that only endanger the economic security of every American while he benefits,” Heinrich said.
“This jobs report reminds us that we need real leadership on the economy instead of an administration and Congressional Republicans pushing an irresponsible agenda that could jeopardize the progress we’ve made. They should work together with Democrats towards an economic future that will ensure all Americans have an equal opportunity at getting ahead.”
Average hourly earnings rose by 4 cents to $26.22 in May. Over the last 12 months, wages are up 2.5 percent. Since 2009, year-over-year wage growth has averaged just 2.2 percent.
U.S. Rep. Pat Tiberi (R-OH), chairman of the Joint Economic Committee, said much work remains.
“The unemployment rate hasn’t been this low since May 2001 and wages are rising,” Tiberi said. “However, the slowing pace of job creation is a reminder that there is much work to do to achieve more rapid economic growth. We’ll continue working in Congress to encourage job creators to expand and hire by reducing the number of burdensome regulations that tie the hands of employers and updating the tax code. Americans deserve economic policies that expand opportunity for themselves and their families.”
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