May Non-Farm Payrolls 54K, Below Consensus Of 165,000, Unemployment Rate 9.1%

Tyler Durden's picture

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.)

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MisterAmbassador's picture

Santelli called it.  He said 55k 8 seconds before it was announced.

Titanic is sinking.

But this ship can't sink!

She's made of iron, sir...  I assure you, she can.  And, she will.

From this moment, no matter what we do, Titanic will founder.

bonddude's picture

Love it. A little Santelli truth one more time. 

Leisman=Queen of the douchebags.

bonddude's picture

Santelli bitch slaps Moody's to its economist's (Zandi) face.

Is everyone drinking Kool-Aid?

Meanwhile Moody's is downgrading the world, munis and I guess leaking (H/T Tyler).

Lieutenant Dan's picture

Looks like we might have seen some intervention in the dollar just then. Anyone else see that? What great economic news!

Hedge Funds: "Flock to bonds! Flock to bonds!"

Cindy_Dies_In_The_End's picture

Now wait a minute people. Ignore this news. Obama is touring the nation praising his rescue of the auto industry.


Tell these unemployed minions to buy a Chevy volt, damn it!

Hard1's picture

Anyway, when the US devolves into an agricultural society non-farm payrolls will become irrelevant.

trav7777's picture

the joke in chief has been having the BLS fix the numbers more aggressively than ever to get headline below 10%.

He's looking at having to face "wtf did you do for 4 years" in 2012

jus_lite_reading's picture


Problem Is's picture

It won't be on Barry Soetoro's radar until it pops up on his teleprompter screen...

holdbuysell's picture

Did you say munis?

Many states fiscal budgets begin July 1. We should be seeing the visible cracks of those budget plans shortly. But, otherwise, all seems quiet for now.

smlbizman's picture

as they proclaim the decrease in as a good thing, i wonder how many of these people took early retirement with gigantic pensions and buy outs and all other parting gifts....that probably cost us 5X's more than if they stayed employed

dbTX's picture

But, otherwise, all seems quiet  for now".


The lull before the storm. A number of States are going to crash big time.

bonddude's picture

Illinois is cutting like crazy and the state Treasurer doesn't want to issue junk bonds.

Its ON !

Chump's picture

Chasms, not cracks.  We have a general idea of which States are fucked and how badly, but a lot of munis are including State funds in their budget forecasts that, in many cases, will not be coming.  Crisis just around the next bend.

2DollarBill's picture

Liesman: "But U-6 went down!"

Henry_Hill's picture

we're just in rehab, dont worry guys

smlbizman's picture

is it my imagination or is  joe kernan getting tired of the lies and becoming more realistic, or is he a created counterpoint? 

jkruffin's picture

I said 50k 2 days ago..........posted right here on ZH

Boston's picture

I said Treasuries rally 1 day ago thru 30 days ago...........posted right here on ZH

TheTmfreak's picture

Well it looks like you were 4000 short.  Some prediction you made.... Looks like you need to realign your crystal ball.


trav7777's picture

yep; disastrous number.

the economy is structurally fucked and so is the government's fiscal position

mtomato2's picture

What does the government's fecal position have to do with it?

TheTmfreak's picture

I have a feeling the saying you don't "shit where you eat" fits in here somehow...

Cthonic's picture

Cue the South Park episode with the mouth to perineum surgeries.

SheepDog-One's picture

But the economy cant sink, she's made of the most bouyant iron available!

MisterAmbassador's picture

Derivatives contracts?


Have a good day, everyone.

Federal Reserf's picture

True, we are now at a state where it APPEARS the laws of physics no longer matter. Buoyant iron is only iron because the shills repeatedly state it is.  It really has properties that more closely resemble an eggshell.

The fiat damage control crew is on the problem.  I can already hear Capn' Bernank barking orders, "man the pumps!"   and Timmy shouting "Capn' Ben, we're trying to weld a patch over the largest hole but the buoyant iron keeps cracking... with all due respect, Cap'n is it time to lower the lifeboats (ballasted with gold bars)."


"Ship's status has been stabilized and it is listing only 47 degrees. The leaks are only transitory"

Ships log, USS Bernanktic  03 May 2011

BS_Merchant's picture

Looks like ADP got this one right.


Credit where credit is due.



Henry_Hill's picture

CNBC shouldve gone to him first instead of the panel of economic "experts"

max2205's picture

Part time workers saying fuck it for the summer, expect more to drop out through august.... hey free house , free summer vacation...shit just like teachers, what a deal, I am in...

firstdivision's picture

QE3 is flying in to the rescue!!  I'm so glad that QE1 and 2 have helped the jobs situation as it was marketed to the public. 

Market flash crashing?

Screwball's picture

I thought the tax cuts were suppose to creat jobs. 

firstdivision's picture

Just like Free Trade creates jobs and better relations...and going off of the gold standard will help human innovation...oh and DDT is good for you.

Screwball's picture

We Americans just love being lied to don't we.

It would be funny, if it wasn't funny.

Urban Redneck's picture

Actually, the link between DDT and cancer is more specious than the link between BLS data and the US economy.

Calmyourself's picture

UR, exactly right Rachel Carson and her ilk killed more people in the 3rd world than anyone has been able to kill including WW1,2, soon 3 well I should probably hold on that one.

citta vritti's picture

yes, on a par with cellphone radiation as a cancer risk, then again this is from UN’s WHO, so who really knows.

To which can be added this from Thank You For Smoking:

Shock and Aweful's picture

And...I heard somewhere yesterday that they (the gubmint) is just about ready to push through the latest "free trade" agreement with Colombia and Korea....I shit you not. 

This is just what we need to "fix" the employment issue here in the U.S.

The problem is that withoug a manufacturing base of good-paying jobs, there can really be NO economic recovery.  And since these jobs are gone and most likely will not be coming back....welcome to the "new normal"  (unless of course we can get ourselves into a war that is so big that full employment in the arms industry is needed for our continued survival  (that will be the program announced for QE-5 - war with Asia)

Seriously though...the stupid motherfuckers running the finances of this nation - which is basically the same group, that created the financial mess we are in, and which came to power during the Reagan years, honestly believe that if we are just MORE pure in our "free-trade", "laissez-faire" and "trickle-down" ideology that everything will fix itself.  This is the SAME EXACT arguement that the hard-line soviets in the Politburo made when the USSR was falling apart - "If only we can be more  pure in our ideology...things will magically get better"

Have these people not been living in the same U.S. as I have?  Do they NOT see the implications and effects of this "global free trade" and top-down approach to the economy?   Makes you wonder if they are really this incompetent or if there is a secret, hidden and nefarious agenda behind all of this?   hmmmmmm... I wonder?


When people keep doing the same things over and over again....and are surprised that the results are the same....they are usually called insane.  I would argue that our entire nation and it's economic system suffer from some sort of pychotic is either that...or this is a planned weakening for the eventual take-down of the U.S.? 

But who profits from that?  (Hint:  not me or you)

trav7777's picture

supranational "free trade" benefits the supranationals.

Everybody should know this by now.  Trade protections were so workers could have decent wages.  Now only those awful socialist nations have them.

John McCloy's picture

All this after 2QEs?
What was the B/D?

AccreditedEYE's picture

+1 LOL  Watch it John, they'll just say they got to go bigger next time... LMAO!!

LRC Fan's picture

Come on Liesman-explain this one away! Lmaooooooo you fucking douche bag. 

youngman's picture

Lord Youngman is going to say.....SHIT...Crapola..

dieyoung's picture

bloomberg "watch for 10yr below 3.00%"



Boston's picture

2.95% ........  and falling

Bartanist's picture

Lol ... and what good will QE3 do without fixing the misallocation of resources?

 That's right, nothing.... or just make things worse.

The Bernank is just following a script that he has been told to follow... and the teleprompter is only an actor filling a role and playing golf.

scatterbrains's picture

I've always believed the boys behind the bernank will collapse the system when they are made whole enough to come in and pick of the pieces for pennies on the dollar.  Is it time for them to roll out the next phase?

kridkrid's picture

May I ask... who are the people behind the Bernank?  And this isn't a loaded question or anything... but who/what is the cabal exists behind the Fed?

WonderDawg's picture

That would be the shareholders of the Fed, which are families like the Rockefellers, Lehmans, Morgans, Rothschilds, etc. Take a look here...

They own our money printing machine.