WASHINGTON (MarketWatch) -- Nonfarm payrolls grew by a seasonally adjusted 431,000 in May, but virtually all the new jobs were temporary jobs at the U.S. Census, leaving private-sector hiring very weak, the Labor Department reported Friday.
Excluding 411,000 temporary 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.
"A disappointing private payroll number to be sure," said John Ryding and Conrad DeQuadros of RDQ Economics.
Markets Hub: Jobs Data Disappoint
Markets were expecting a gangbusters U.S. jobs report and were left wanting. The data come as concerns swirl once again about Europe's crisis with the spotlight on Hungary. Dow Jones Newswires's Paul Vigna, Madeleine Lim and Neal Lipschutz discuss.
The payrolls growth came in weaker than the 540,000 increase expected by economists surveyed by MarketWatch. See our complete economic calendar and consensus forecast.
Prices for Treasurys rallied as investors on Wall Street bid stock prices sharply lower in reaction to the payrolls data. See full story on the markets.
Digesting the data, Wells Fargo chief economist John Silvia said the U.S. economic recovery continues.
There's growth, he said, but it's "too slow to generate the revenues public policymaking are hoping for, too slow to generate all the jobs households are expecting."
The nation's 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%. Read the full report on the Bureau of Labor Statistics website.
The decline wasn't particularly good news, however, because it reflected 322,000 people dropping out of the labor force, partially reversing April's 805,000 increase. While unemployment dropped by 287,000 to 15 million for May, employment also fell, dipping 35,000 to 139.4 million.
Nevertheless, employment as measured by the household survey is up by 1.6 million since December.
The participation rate dropped by two-tenths of a percentage point, to 65%.
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%.
Economists were divided about what will happen next.
Hiring "will slow down markedly in the second half of the year," wrote Harm Bandholz, chief U.S. economist for UniCredit Markets.
"We think that the unemployment rate will rise again toward 10% in summer," he told clients.
Others remained more hopeful.
Excluding 411,000 temporary 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.
"A disappointing private payroll number to be sure," said John Ryding and Conrad DeQuadros of RDQ Economics.
Markets Hub: Jobs Data Disappoint
Markets were expecting a gangbusters U.S. jobs report and were left wanting. The data come as concerns swirl once again about Europe's crisis with the spotlight on Hungary. Dow Jones Newswires's Paul Vigna, Madeleine Lim and Neal Lipschutz discuss.
The payrolls growth came in weaker than the 540,000 increase expected by economists surveyed by MarketWatch. See our complete economic calendar and consensus forecast.
Prices for Treasurys rallied as investors on Wall Street bid stock prices sharply lower in reaction to the payrolls data. See full story on the markets.
Digesting the data, Wells Fargo chief economist John Silvia said the U.S. economic recovery continues.
There's growth, he said, but it's "too slow to generate the revenues public policymaking are hoping for, too slow to generate all the jobs households are expecting."
The nation's 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%. Read the full report on the Bureau of Labor Statistics website.
The decline wasn't particularly good news, however, because it reflected 322,000 people dropping out of the labor force, partially reversing April's 805,000 increase. While unemployment dropped by 287,000 to 15 million for May, employment also fell, dipping 35,000 to 139.4 million.
Nevertheless, employment as measured by the household survey is up by 1.6 million since December.
The participation rate dropped by two-tenths of a percentage point, to 65%.
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%.
Economists were divided about what will happen next.
Hiring "will slow down markedly in the second half of the year," wrote Harm Bandholz, chief U.S. economist for UniCredit Markets.
"We think that the unemployment rate will rise again toward 10% in summer," he told clients.
Others remained more hopeful.