Washington, DC, June 2, 2006--The unemployment rate ticked lower in May to 4.6% from 4.7% in April, according to the Labor Department.
Job growth during the month was slower that in prior months increasing by 75,000 in May, well below the 174,000 expected by economists. Revisions reduced job gains in the past two months by 37,000.
The unemployment rate is May was the lowest since July 2001. The survey showed employment increased by 288,000 to 144.0 million in May. Unemployment fell by 108,000 to 7.0 million.
April's payroll gains were revised lower to 126,000 from 138,000 initially reported.
Inflation pressures eased in May after surging in the previous month.
Average hourly earnings increased by 1 cent, or 0.1% to $16.62 an hour after jumping 0.6% in the previous month. Average hourly earnings are up 3.7% in the past year.
The average workweek fell by six minutes to 33.8 hours, while total hours worked in the economy decreased by 0.2%.
Hiring in May was concentrated in the services sector. Health-care employment continued to expand, rising 19,000. Employment increased for computer systems design and wholesale trade. On the other hand, 27,000 jobs were lost in the retail trade sector.
Construction employment was essentially flat, rising only 1,000. Following strong gains in January and February, the building sector has not changed in the past three months.
