Eye on the prize

3 June 2016 By Gina Chon Follow @GinaChon

Only 38,000 new U.S. positions were added in May, the worst monthly report in six years. Even so, payrolls have increased by a solid 116,000 jobs on average over three months and hourly wages rose again. The bigger picture demands more serious consideration.

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The United States added 38,000 jobs in May, while the unemployment rate fell to 4.7 percent, the Bureau of Labor Statistics said on June 3. Analysts expected growth of 158,000 positions.

Average hourly wages rose by 5 cents to $25.59 from April. The labor-force participation rate fell to 62.6 percent, reflecting a 0.2 percentage-point drop from the previous month. Healthcare saw job growth while mining once again declined. A labor strike at Verizon kept more than 35,000 workers off payrolls for the May reporting period. Verizon agreed to a labor deal on May 27, ending the strike.

The jobs report will be taken into consideration when the Federal Reserve meets for two days starting June 14 to consider an interest-rate rise.

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