U.S. Jobs Weakness May Be Temporary, But Loss of Momentum Isn’t
- Payroll gains running below last year’s pace after May figures
- Some data consistent with signs of tight labor market
What the Jobs Report Says About the Health of the Economy
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There are plenty of explanations for the weaker-than-expected May jobs report, but the big picture is clear: The U.S. labor market has lost some of its mojo.
Monthly payroll gains are averaging 162,000 this year, a step down from the 2016 pace of 187,000, following a below-forecast rise last month and downward revisions to March and April in Labor Department figures released Friday. While the unemployment rate fell to a 16-year low of 4.3 percent, the employment-to-population ratio also declined. Wages failed to accelerate as expected, with annual growth remaining below highs for the previous expansion.