After seeing quantum leaps in employment growth over the past few months, job growth did not meet expectations in May. According to the Bureau of Labor Statistics’ unemployment report, the unemployment rate in the United States dropped 0.3 percentage points to 4.7 percent. There were 38,000 jobs created in May, averaging 116,000 new jobs added each month over the last three months.
Economists Baffled by Figures
The employment changes in May defied expectations for the month, which anticipated continued six-figure job growth on par with previous months. In spite of the decrease in the amount of new jobs created compared with previous months, the national unemployment rate decreased – the lowest figure since November 2007, when the unemployment rate was 4.6 percent. Economists feel this is near full employment for the nation.
Revisions to previous months: The change in total nonfarm payroll employment for March was revised from +208,000 to +186,000, and the change for April was revised from +160,000 to +123,000.
Wages Continue to Rise
The average wage paid to U.S. workers continued to increase in April, reaching a total of $25.59. This is an 5 cent increase compared with the average hourly earnings in April and a 2.5 percent increase year-over-year. Economists predicted a wage increase in 2016, and this continues to prove their prediction correct.
Tech Sector Still Strong
While most industries cut jobs, tech actually saw a gain of 10,000 new jobs created. Gains of 7,400 new jobs in Computer Systems Design and Related Services and 7,200 new jobs in Management and Technical Consulting indicate no lack of confidence in the tech sector.
In spite of job growth in these areas, the unemployment rate in Professional and Technical Services saw a slight increase to 2.8 percent.
May Jobs Report Fast Facts
Hire Top Tech Talent in 2016
While the IT industry continues to add jobs, the competition to hire the best talent will continue to heat up. Modis can help you stay ahead in 2016 and connect your business with the very best tech professionals. Learn more about how we can move your business forward or contact us today!