Washington, DC, June 3--Nonfarm payrolls increased by 78,000 in May, according to the Labor Department. The level of hiring was the weakest since August 2003, according to a survey of business establishments.
The unemployment rate slipped to 5.1% from 5.2%, based on a separate household survey. It's the lowest unemployment rate since September 2001.
Economists had forecast a gain of 186,000 in May.
Payroll growth in March was revised down by 24,000 to 122,000, while April payroll gains were unrevised at 274,000.
Average hourly wages increased 3 cents, or 0.2%, to $16.03 in May. Wages are up 2.6% in the past year.
The average workweek was unchanged at a revised 33.8 hours. Total hours worked in the economy increased 0.1%.
Hiring weakened across most sectors in May. Private sector hiring slowed to 73,000 in May from 261,000 in April. Factory employment fell 7,000, the 10th decline in the past 12 months. Construction jobs increased by 20,000.
Service-sector employment rose by 64,000. Most of the gains were in health services, which rose by 33,000. Retail employment increased by 11,000. Temporary help jobs fell by 4,000.
Among 278 industries, 55.8% were hiring in May, down from 63.7% in April. Among 84 manufacturing industries, 46.4% were hiring in May, down from 49.4% in April.
The picture painted by the separate household survey was brighter, with employment rising by 376,000. Unemployment fell by 16,000 to 7.65 million. The labor-participation rate rose to 66.1% from 66%.
