Payrolls Up 132,000, Unemployment Rate Still 4.5%

Washington, DC, July 6, 2007—Payrolls in increased by 132,000 in May as the unemployment rate remained a six-year low of 4.5 percent, according to the Labor Department.  

The increase in employment followed a 190,000 gain in May that was larger than previously reported. Revisions added 75,000 to payroll figures previously reported for April and May.

Economists were expecting an increase in payrolls of 125,000.

Workers' average hourly earnings rose 6 cents, or 0.3 percent, after a 0.4 percent increase the previous month. Economists expected a 0.3 percent increase. Earnings were up 3.9 percent from June of last year.

Service industries added 135,000 workers last month after hiring 199,000 more workers in May. Government payrolls increased by 40,000, the biggest increase since September. Retailers cut 24,200 jobs in June after adding 13,200 in May.

UAL Corp.'s United Airlines, the world's second-biggest carrier, said last month it plans to hire pilots for the

Payrolls at builders rose 12,000 after falling 2,000.

Manufacturers' payrolls fell 18,000 last month after shrinking by 7,000 a month earlier. Economists expected factories to eliminate 11,000 positions. The manufacturing workweek rose to 41.3 hours from 41.1 hours and overtime increased to 4.3 hours from 4.2 hours.

Average weekly hours worked by production workers rose to 33.9 from 33.8. Average weekly earnings rose to $589.18 last month from $585.42 in May.