US Adds 280K Jobs In May, Much Higher Than Expected, Yellen Gets Green Light To Hike

Tyler Durden's picture

Contrary to expectations of a modest 226K increase in nonfarm payrolls, according to the BLS in May the US added a whopping 280K jobs, with the April print revised from 223K to 221K, but March revised higher from 85K to 119K. This was the highest monthly increase in payrolls since December of 2014.  The unemployment rate rose from 5.4% to 5.5% on the number, as the number of employed Americans according to the Household Survey also rose by an almost equal 272K.

 

But while the strong number will surely grab Yellen's attention, what is most notable is the jump in average hourly earnings, which rose by 0.3%, above the 0.2% expected, and well above the 0.1% in April, suggesting the slack in the labor force is indeed evaporating. Another way of showing the wage growth, is that it rose 2.3% in May from a year ago, which was the highest annual increase since 2009!

 

Another way of seeing the wage growth is comparing it to the civilian employment-to-population rate, traditionally the best correlation, which rose from 59.3% to 59.4%, while wages grew by 2.3% in May, the biggest annual increase since 2009.

 

Judging by the kneejerk market reaction, the data is strong enough to give Yellen a green light not only for a September rate hike, but even potentially keeps June in play.

* * *

More details from the report:

Total nonfarm payroll employment rose by 280,000 in May, compared with an average monthly gain of 251,000 over the prior 12 months. In May, job gains occurred in professional and business services, leisure and hospitality, and health care. Employment in mining continued to decline. (See table B-1.)

 

Professional and business services added 63,000 jobs in May and 671,000 jobs over the year. In May, employment increased in computer systems design and related services (+10,000). Employment continued to trend up in temporary help services (+20,000), in management and technical consulting services (+7,000), and in architectural and engineering services (+5,000).

 

Employment in leisure and hospitality increased by 57,000 in May, following little change in the prior 2 months. In May, employment edged up in arts, entertainment, and recreation (+29,000). Employment in food services and drinking places has shown little net change over the past 3 months.

 

Health care added 47,000 jobs in May. Within the industry, employment in ambulatory care services (which includes home health care services and outpatient care centers) rose by 28,000. Hospitals added 16,000 jobs over the month. Over the past year, health care has added 408,000 jobs.

 

Employment in retail trade edged up in May (+31,000). Over the prior 12 months, the industry had added an average of 24,000 jobs per month. Within retail trade, automobile dealers added 8,000 jobs in May. 

 

Construction employment continued to trend up over the month (+17,000) and has increased by 273,000 over the past year.

 

In May, employment continued on an upward trend in transportation and warehousing (+13,000). Truck transportation added 9,000 jobs over the month.

 

In May, employment continued to trend up in financial activities (+13,000). Over the past 12 months, the industry has added 160,000 jobs, with about half of the gain in insurance carriers and related activities.

 

Employment in mining fell for the fifth month in a row, with a decline of 17,000 in May. The loss was in support activities for mining. Employment in mining has decreased by 68,000 thus far this year, after increasing by 41,000 in 2014.

 

Employment in other major industries, including manufacturing, wholesale trade, information, and government, showed little change over the month.

 

The average workweek for all employees on private nonfarm payrolls remained at 34.5 hours in May. The manufacturing workweek was unchanged at 40.7 hours, and factory overtime remained at 3.3 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.7 hours. (See tables B-2 and B-7.)

 

In May, average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents to $24.96. Over the year, average hourly earnings have risen by 2.3 percent. Average hourly earnings of private- sector production and nonsupervisory employees rose by 6 cents to $20.97 in May. (See tables B-3 and B-8.)

 

The change in total nonfarm payroll employment for March was revised from +85,000 to +119,000, and the change for April was revised from +223,000 to +221,000. With these revisions, employment gains in March and April combined were 32,000 more than previously reported. Over the past 3 months, job gains have averaged 207,000 per month.

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Shocker's picture

Recovery Year 7

Layoff  / Business Closing List: http://www.dailyjobcuts.com
-

remain calm's picture

Happy days are here again

SheepRevolution's picture

"Happy days are here again"

You bet! I'm buying as much silver as I possibly can rigth now!

VinceFostersGhost's picture

 

 

Yellen Gets Green Light To Hike

 

Mass suicide....sounds fun.

Took Red Pill's picture

and gold & silver are headed down. Will be time to go shopping again soon!

Soul Glow's picture

I bought silver yesterday.  JPM always has the greatest sales!

:)

MillionDollarBonus_'s picture

 

AWESOME!

There is is just no denying that this figure bodes extremely well for both the US and the global economy. Our Federal Reserve's easing policies and our government's fiscal stimulus programs have slowly but surely worked their magic, and thanks to these efforts Americans are starting to feel a gust of wind under their feet as jobs become more available and ever more business opportunities arise. This is a fantastic opportunity to invest in depressed American real estate - bold and savy investors who buy now will reap the rewards as we begin our next wave of economic growth.

 

Chupacabra-322's picture

Hey, MDB,

& unicorns / pots of gold at the end of the rainbow exist too you POS.

Banker Buster's picture

MDB did you forget the /S in your comment?  

If not, go ahead and be bold and buy into real estate now with an increasing interest rate and I'll watch from the sidelines.

inhibi's picture

LOL this had to have been a /sarc.

 

Every year, America adds jobs right before the summer months. And every year, its made to be the 'start' of the recovery.

 

There is no recovery. How can there be? Its a global economy, and it depressed around the world. The only thing I see is more temp jobs that pay 40k a year or less. These kinds of jobs will do nothing to sustain our consumer-oriented economy.

 

mtl4's picture

Why all the haters, I mean have you seen a serious comment from MDB yet?!

If you don't like the sarcasm or don't get it then don't read his posts.

Billy Sol Estes's picture

Bought Plat, now its down another $15 per/oz from when I bought....

VinceFostersGhost's picture

 

 

I only like to buy gold and silver when it's really expensive.

 

Cause I don't want people to think I'm poor.

SoilMyselfRotten's picture

Cool VFG, I've got a $2500 1 ounce gold bar with your name on it

philipat's picture

"and gold & silver are headed down. Will be time to go shopping again soon!"

That was inevitable with the Commercial Net Short position. If it wasn't the BLSBS it would be some other pretext. We are now in the "Rinse" cycle and will go back to the lower end of the range, possibly even lower with such a record net short position of the Commercials.

The question is WHY do ther managed money crowd keep coming back to get screwed? Without them, the Commercials would themselves be screwed.

In the meantime, with no position limits and a captured "Regulator" these "Markets" are totally under the control of the Cartel.

They are so totally obvious in their tactics and they actually WANT you to know that there is no way out for the plebs in PM's. Don't fight the Fed etc. But, as I keep endlessly saying, that makes for a fantastic trading opportunity. I am short Gold to 1150 and Silver to 15.50 and have already made good returns which I will always re-invest in physical metal.

I will loose the last one, when PM's finally break out, but the physical I have stacked in the interim will more than compensate. In the meantime, trade WITH them, not against them...

Puncher75's picture

Valid strategy, but not the one I'm taking.  Just buying physical at spot from wholesaler in my very large city.  The phyzz is getting tougher and tougher to get my hands on, and this is the busiest wholesaler / refiner in the city.  There is just an extremely limited amount on the streets right now.  Sure, you can pay $2.50 / $50 (silver/gold) above spot online, but that just seems like a heavy vig.  Anyway, good luck.  In the end we all end up in the same place; with plenty of physical just when the herd turns. 

mtl4's picture

Gold and silver could go alot lower if the US market rockets up when the rate hike happeens in Oct........nobody will believe it was possible until it happens.  Once you get that low, only then will the PMs actually start their journey upward again.

 

Interesting that the gov't is doing everything in their power to make sure the Fed has a green light to raise rates in fall no matter what numbers they need to fabricate.

disabledvet's picture

June is like...right now.

I'd laugh if the Fed actually raised rates...although sure would explain a lot of things.

This is no recovery though.

"Zero Hedge" claiming as such just goes to show what a Government mouthpiece they have become.

This isn't even replacement cost for labor and sounds like a bunch of fat fuck Government toadies adding to the numbers and while the debt and pension obligations continue to rise exponentially.

"Not all Governments are created equal" of course.

Some aren't nearly impacted by the massive inflation being created here as others are.

Those places will be where the huge profits created in this recovery have been and will be continued to be deployed.

That's not many places for those that are wondering.

Incomes are up four cents an hour (if you even have a job) while food and energy prices have more than doubled.

Discretionary income has completely collapsed while "forced savings"(Alan Greenspan) is surging.

Good luck avoiding a "Government correction." Riots aren't cheap...

philipat's picture

The Fed has been embarassingly exposed as having painted itself into a corner, so wants to raise rates just once by 0.25% just to prove that they are the masters of the universe they believe they are. They will then immediately implement QE4 and apparently don't have the intellectual capacity to think beyond the next move to understand that this will ridicule their decisons further. Can anyone still take them seriously?

TheFourthStoog-ing's picture
TheFourthStoog-ing (not verified) VinceFostersGhost Jun 5, 2015 8:14 AM

Put that gun down! Gold's bound to rebound by 2050.

Soul Glow's picture

Let's see....

Which asset would I rather own right now?

Dollars?  The almighty fiat dollar?  Well how many of them are there and what are they backed with?  Trillions and nothing!  Oh god no, I don't want those.

Treasuries?  WIth rates at all time lows, no thank you.

Stocks at all time highs!  Nope.

I'll take gold and silver thank you very much.  They are finite, stand the tests of time, considered money, and girls think they're pretty.

:)

Billy Sol Estes's picture

The good thing about PM's is rats can't build nests out of your stash of gold and silver tucked away in the wall. FRN's, bonds, Treasuries, and stock certificates on the other hand are a great bedding material for rodents of all walks of life. 50 years from now maybe even humans will create little bedding areas made of shredded FRN's to keep warm.

Besides, PMs are cold to the touch, you might catch the flu sleeping on them.

Oldwood's picture

It will far more interesting to know what jobs were created.

philipat's picture

Who are all these new Bartenders and Waiters serving?

FrankieGoesToHollywood's picture

The 1%.  Ever been to a fancy resturant where about 5 wait staff server you?  Well at the exlusive restuarants, I hear there are more like 20.  Including restroom staff if you catch my drift.

Charles Nelson Reilly's picture

probably serving the half dozen people who live in their cars in my commuter train parking lot...

it's all bullshit... all of it.

inhibi's picture

Other waiters and bartender. Hard to make yourself lunch when you're working night shifts and two other temp jobs.

joseJimenez's picture

Bet you a dollar it will be revised downward when nobody is looking

TheFourthStoog-ing's picture
TheFourthStoog-ing (not verified) SheepRevolution Jun 5, 2015 8:19 AM

Doubling down on one's losses is a proud Zero Hedge tradition.

Attaboy!

madcows's picture

"Summer of Recovery, Year 7."

I'm sure to be spending.  Let's see, SPF40 or SPF 50.  How about some new undies.  i haven't bought new undies in years.  They're getting a bit threadbare.

joseJimenez's picture

make sure your undies have secret pockets so can carry your gold and silver.  Besides, the girl will really be impress.

ZH Snob's picture

these jacked up stats are great.  the statists have unknowingly called their own bluff.  Yellen is forced to either raise rates or offer even lamer excuses.

Eyeroller's picture

Hmm.... that's a tough one, but I'm going to go out on a limb and say it will be 'offer even lamer excuses'.

This is it's picture

No prizes for guessing!

BTFTop

STFBottom

Headbanger's picture

WHAT I SAY!?

THE FERAL RESERVE WILL RAISE RATES SOON NO MATTER WHAT YOU MOOKS!

eclectic syncretist's picture

Rates could be up 0.75% by September, and 0.5% next month. This is definitely going to ramp up volatility over the next couple of months.  I wonder how much of a bond sell off we might see?

rayban's picture

If what you think were to happen, long bonds would yield less than 2.75% and 10s below 2%.

TheFourthStoog-ing's picture
TheFourthStoog-ing (not verified) Headbanger Jun 5, 2015 8:20 AM

The economy's BACK!

Spitzer's picture

Rates might rise but they will still be net negative.

Racer's picture

Smoke and mirrors

valley chick's picture

Smoke and mirrors = extend and pretend. 

insanelysane's picture

It took until June to realize how many jobs were gained in March.  Didn't see them in April.  Didn't see them in May.  But nice of them to show up in June.  I am going to spend all sorts of money this weekend on this report.  

Slomotrainwreck's picture

Seasonal adjustment on top of annual adjustment on top of fantasy adjustment. Fake jobs, Fake housing, Fake auto sales, Fake economy. Raising rates will kill every motivation to mortgage, finance/refi or credit card the purchase of assets and goods.

 

twh99's picture

More like bread and circuses.

thinair's picture
thinair (not verified) Jun 5, 2015 7:41 AM

There are ten people and resources to feed only nine. What happens to the tenth and why? O’ Humanity, Why are you running and for what? Is anyone on this planet trying to solve this problem?

I am working on it because if everyone will be a bystander when who will fight?

 http://just-a-thought-from-thinair.blogspot.com/

Read the post titled “No one saw it coming”

 

Thanks zerohedge for all the good work you do!

Wild Theories's picture

10 people with resources to feed 9?

soon there will only be 9 people and food for 10, then 8 people and food for 11, then...

ingenuity and innovation is all that's required

LawsofPhysics's picture

I took a biotech company public in 2000.  You have no idea how hard that is to do, nor do you understand that innovation requires a tremendous amount of real resources.  Unfortunately, the resources that are now required in order to simply maintain the current status quo are tremendous.  So, in order to innovate, the standard of living for most must decrease.

Sorry asshat, there are no free lunches and you cannot get something from nothing when it comes to the laws of Nature and physics.

Yes, humanity saw great innovations from 1910-1950.  Assholes, like yourself, ignore the real costs of those innovations.  Now consider how the world has been investing it's resources over the last 40 years...

dumbass.

Wild Theories's picture

hmm, I was going for a rather obvious joke there, someone's not in a lighthearted mood today...

TheFourthStoog-ing's picture
TheFourthStoog-ing (not verified) LawsofPhysics Jun 5, 2015 8:25 AM

The only thing you've ever taken public is your bald head.