Slower Hiring, Unemployment Drop Give Mixed U.S. Labor Signs
- Wage growth remains slower than peak of previous expansion
- Participation rate declines, as does underemployment rate
U.S. Adds 138,000 Jobs in May, Jobless Rate Falls to 4.3%
This article is for subscribers only.
The U.S. labor market gave mixed signals in May, with a decline in the unemployment rate to a 16-year low contrasting with below-forecast hiring and wage growth, Labor Department figures showed Friday.
Cooler hiring may partly reflect the challenge of finding skilled and experienced workers amid a tightening job market. It may also be a sign businesses are reluctant to expand their workforce until they see more evidence the new administration’s plans are translating into legislation that’ll reduce taxes and spur growth. Even so, with the revisions, the three-month average of payroll gains was the weakest since 2012.