Job growth stalls in May

Pin It

After months of big gains in employment numbers, the recovery stalled in May. While the economy added 54,000 jobs last month, that’s a sharp decline from the monthly average of 220,000 jobs added in February, March and April, the Bureau of Labor Statistics reported today. The number also falls short of analyst predictions that about 169,000 jobs would be added.

In addition to weaker job growth last month, the unemployment rate rose for the second time in two months, jumping slightly from 9.0 percent in April, to 9.1 percent in May.

The newest BLS numbers make an already complex jobs picture more puzzling, as some economic indicators show positive signs, while others seem to be making negative progress.

Here’s a rundown of the good — and the not so good — signs for job growth.

1. Online job postings are up: The Conference Board’s monthly “Help Wanted Online” report found that online job postings were up 148,800 last month, to a total of 4.47 million advertised job openings. Additionally, May marked all all-time high for job postings in six of the 22 occupational groups the report covers.

2. Job cuts are down from last year: According to the monthly job cuts report from outplacement firm Challenger, Gray and Christmas, the number of layoffs announced by employers through the end of May 2011 was 22 percent lower than at this time last year. The number of announced cuts month-to-month, however, increased slightly, from 36,490 in April, to 38,810 in May.

3. Despite slowing slightly, private sector job growth is still good: The ADP jobs report, a snapshot of private-sector hiring, came in 137,000 jobs short of economist predictions. Analysts surveyed by Bloomberg predicted that about 175,000 jobs would be added, but when the report was released on June 1st, it showed private sector employment increased by only 38,000 jobs.

The BLS numbers, however, showed a rosier picture for private sector hiring, reporting that 83,000 jobs were added in May, for a total increase of 2.1 million private sector jobs in the last 15 months. Generally, the BLS numbers are seen as a more accurate indicator of job growth.

4. Long-term unemployment still a problem: The number of people unemployed long-term (more than 27 weeks) jumped from 5.8 million in April to 6.2 million in May. That number, however, is still less than the 6.7 million people counted as unemployed long-term in May of last year.

5. Manufacturing growth slows in May: The Institute for Supply Management’s monthly report showed that the manufacturing sector expanded for the 22nd consecutive month, although that expansion slowed in May. The BLS report also showed a decline in manufacturing jobs last month.

In general, last month’s crop of economic reports showed that, while the economy may have slipped from April to May, long-term progress still looks good. A post on the White House blog this morning put it well, saying, “There are always bumps on the road to recovery, but the overall trajectory of the economy has improved dramatically over the past two years … The monthly employment and unemployment numbers are volatile and employment estimates are subject to substantial revision. Therefore, as the Administration always stresses, it is important not to read too much into any one monthly report.” And, while the White House may be a bit partial, the post does make a good point, in that one month of poor data doesn’t cancel out the progress the economy has made since the recession ended in 2009.

Here’s hoping for better numbers next month!

What do you think about the unemployment numbers?

  1. I think this stuff comes in waves. There are signs of overall growth, but we’ll still be buffetted by some incoming breakers yet….

    The key thing is, of course, to hold fast to the realisation that – even in a slump – there are alwasy jobs, including new and good ones.

    The focus has to be on how we improve our chances of being hired. That’s what I focus on with clients; I discourage a focus on the numbers. Like the numbers on the bathroom scale, they can make a day good or terrible; but they bear little relation to what we actually have to DO.

    • In the bigger picture the overall job situation is improving. Numbers fluctuate and snapshot numbers can paint the wrong picture. necessity is the mother of invention… being jobless can make you think in new ways and open up new opportunities. For instance, is a redesign of online shopping to enable “local” shopping. Think outside the box and you may realize that you can use it in innovative ways to start a side business from home pursuing your own favorite hobby (piano lessons, dog walking, baking, delivery services, etc.). The big question is how open are we all to taking risks and making such big changes in our career path.

  2. Pingback: How bad is the job market? Bad, but not awful : The Reid Report

  3. Pingback: 47 percent of employers plan to add workers by year's end | Better Jobs Advice

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>