Payrolls in U.S. Rise More Than Forecast as Wages Boosted - Bloomberg BusinessPayrolls climbed in May by the most in five months and worker pay accelerated, showing companies were upbeat about the U.S. economy’s prospects after an early-year slump.
The 280,000 advance in payrolls exceeded the median forecast in a Bloomberg survey and followed a revised 221,000 April increase, figures from the Labor Department showed Friday in Washington. The median forecast called for a 226,000 May gain. The unemployment rate crept up to 5.5 percent as more people entered the labor force, while hourly earnings rose from a year ago by the most since August 2013.
In a continuing theme, skilled positions (professional and business services and health care) accounted for more than 40% of May’s employment increase. Over the last three months, skilled positions have accounted for 46% of the employment increase. Such jobs currently account for 24.5% of nonfarm employment. Further highlighting the labor market's growing emphasis on skills, the unemployment rate for those with only a high school education moved somewhat higher for the second consecutive month and up to 5.8% vs. 5.4% for April. That figure is now slightly above the national average. In contrast, the unemployment rate for those with a Bachelor's Degree or higher held steady at 2.7% while the unemployment rate for those with an Associate's Degree or some college fell for the second consecutive month to 4.4%.
The full employment situation report can be found at: http://www.bls.gov/news.release/arch...t_06052015.pdf
In general, this fairly robust report strengthened the argument for a rebound in economic activity from Q1. Were the economy facing a more protracted slowdown, the employment report would very likely have been weaker. All said, this data is consistent with the recently-released Federal Reserve Beige Book report. The economy is continuing to expand.