Massive collapse in the American employment situation: May NFP at 54K, down from 244K, and not only below consensus of 165K, but below the lowest economist prediction of 65K. Private payrolls increased just 83K on expectations of 170K. Manufacturing payroll dropped 5K on expectation sof a 10K rise. The unemployment rate was 9.1%, although U-6 declined from 15.9% t 15.8%. The absolute number of unemployed increased fom 13.747 million to 13.914 million. For the third month in a row the Labor Force Participation rate remained flat at 64.2%.
Chart of the all important labor force participation:
From the Establishment Survey:
Total nonfarm payroll employment was little changed in May (+54,000), following gains that averaged 220,000 in the prior 3 months. Private-sector employment continued to trend up (+83,000), although by a much smaller amount than the average for the prior 3 months (+244,000). In May, job gains occurred in professional and business services, health care, and mining. Local government employment continued to trend down. Employment in other major industries changed little over the month. (See table B-1.)
Employment in professional and business services continued to increase in May (+44,000). Notable job gains occurred in accounting and bookkeeping services (+18,000) and in computer systems design and related services (+8,000). Employment in temporary help services was little changed.
Health care employment continued to expand in May (+17,000). Employment in the industry had risen by an average of 24,000 per month over the prior 12 months.
Mining added 7,000 jobs in May. Employment in mining has risen by 115,000 since a recent low point in October 2009.
Employment in manufacturing changed little in May (-5,000). Job gains in fabricated metal products and in machinery were offset by losses in transportation equipment, paper and paper products, and printing and related support activities. The manufacturing industry added 243,000 jobs from a recent low point in December 2009 through April 2011.
Construction employment was essentially unchanged in May. Employment in the industry has shown little movement on net since early 2010, after having fallen sharply during the 2007-09 period.
Employment in local government continued to decline over the month (-28,000). Local government has lost 446,000 jobs since an employment peak in September 2008.
Employment in other major industries, including retail trade, transportation and warehousing, information, financial activities, and leisure and hospitality, changed little in May.
The average workweek for all employees on private nonfarm payrolls remained at 34.4 hours in May. The manufacturing workweek for all employees increased by 0.2 hour to 40.6 hours over the month, while factory overtime was unchanged at 3.2 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was 33.6 hours in May. (See tables B-2 and B-7.)