According to the Bureau of Labor and Statistics U.S. employers added a robust 280,000 jobs in May, showing strong signs that the economy is back on track. The fact that the unemployment rate ticked up to 5.5 percent from 5.4 percent in April is not necessarily a bad thing. In fact it points to evidence that hundreds of thousands more people sought jobs in May, and not all found them.
So much for those failed liberal economic policies every Republican candidate repeats ad nauseam at every fundraiser and campaign stop they blather at.
This is how this months report breaks down...
- Construction and health care companies the drove the May job growth although persistently cheaper oil led energy companies to shed workers for a fifth straight month.
- Although not spectacular average hourly earnings increased by 3 cents to $24.87. That represents a 0.3% rise month-over-month, slightly higher than the 0.2% estimate. Year-over-year earnings rose 2.3%, above the 2.2% estimate. Pretty solid according to most analysts.
- Over the past three months, the economy has added an average of 207,000 jobs.
- Home sales are accelerating despite otherwise slow-spending consumers. Sales of newly built homes have surged 23.7 percent through the first four months and rising demand for new homes could lead construction firms to ramp up hiring.
- Americans bought 1.64 million cars and trucks in May, the most since July 2005. If that trend were to endure, it would benefit a manufacturing sector that's added a scant 4,000 jobs since January.
- The aforementioned factors could power faster growth, fuel job gains and boost wages. If they do, a broader economic recovery than the one that's existed in the six years since the Great Recession officially ended could emerge.
- Over the past 12 months, around 3 million jobs have been added.
- Employers seem to be envisioning a healthier economy, given that the weekly number of people applying for unemployment benefits — a proxy for layoffs — has remained under a historically low 300,000 for more than four months. By holding on to nearly all their workers, businesses are ensuring that they will have the capacity to respond to greater customer demand.
- The dollar has appreciated about 19 percent in the past year against other major currencies. That trend has made U.S. goods costlier overseas, thereby squeezing exports and the U.S.-based branches of foreign companies.
- Oil prices have dropped nearly 45 percent since July. Though good news for consumers the decrease has caused the energy industry to shed workers and cut orders for pipelines and equipment.
IMF Managing Director Christine Lagarde, saying a rate increase could disrupt the economy, urged the Fed to await signs of wage growth.
Fed Chair Janet Yellen has said she expects to raise rates this year if the economy continues to improve, thereby ending nearly seven years of record-low rates.
Job site Glassdoor’s Chief Economist Andrew Chamberlain said…
“Today’s report shows that the labor market still has a lot of momentum. All the factors that sparked weak jobs numbers for March were temporary. A late winter sniffle rather than a lingering illness.”
“Would employers be adding jobs at this pace and would layoffs be this low if they were worried about the near-term outlook or the economy was truly struggling? It’s difficult to make that case, even if the seeming inconsistency in the data can be difficult to reconcile.”
Mark Zandi, chief economist of Moody’s Analytics said…
“The job market posted a solid gain in May. Employment growth remains near the average of the past couple of years. At the current pace of job growth the economy will be back to full employment by this time next year."
Failed liberal economic policies my godless ass!