Payrolls Increase in May, Unemployment Rate Falls

Washington, DC, June 4, 2010--Nonfarm payrolls increased by a seasonally adjusted 431,000 in May, but nearly all the new jobs were temporary jobs at the U.S. Census, the Labor Department reported Friday.

Excluding 411,000  Census workers, payrolls rose by 20,000 in May. According to the survey of 400,000 business establishments, private-sector payrolls increased by 41,000, the fifth straight monthly gain.

The payrolls growth came in weaker than the 540,000 increase expected by economists.

Meanwhile, the payrolls count in March and April was revised lower by 22,000. Payrolls rose by 208,000 in March and 290,000 in April.

The unemployment rate fell to a seasonally adjusted 9.7% in May from 9.9% in April, according to a separate survey of 60,000 households. Economists had been expecting the jobless rate to sink to 9.8%.

The decline wasn't particularly good news, however, because the drop was due to 322,000 people dropping out of the labor force.

An alternative measure of unemployment, which includes discouraged workers and those forced to work part-time because of the weak economy, fell to 16.6% from 17.1%.

Total hours worked in the private sector rose by 0.3%. The average workweek increased by six minutes to 34.2 hours.

Average hourly earnings rose by 0.3% to $22.57.

Among all industries, 54% were hiring, down from 67% in April.

Payrolls in goods-producing industries rose by 4,000, including 29,000 in manufacturing, the fifth straight increase. Manufacturing hours rose to 41.5 hours from 41.2.

However, construction employment dropped by 35,000, most in nonresidential specialty crafts.