The unemployment rate remained at 3.6 percent in May, and the number of unemployed persons was little changed at 5.9 million, according to the Department of Labor’s Friday report. This is the lowest rate in almost 50 years (since 1969). And it marks the 15th consecutive month where the rate has been at or below 4 percent.
The U.S. economy added only 75,000 non-farm payrolls in May. This was below expectations for 175,000 nonfarm payroll additions, based on Bloomberg-compiled estimates.
“The economy slowed more than expected during May 2019 with the addition of 75,000 new jobs, down from a revised 224,000 in April,” said Elizabeth Norton, managing research director of Transwestern, in a statement. “This is below the average monthly gain of 164,000 jobs since the start of the year. Weakness was felt within the state and local government sector with a loss of 19,000 jobs. The retail sector saw 7,600 jobs eliminated, primarily in the apparel sector as several companies are shuttering stores due competition from online shopping. The primarily office-using professional and business services sector grew by 33,000 jobs, a downshift from the 62,000 added during April but on par with the average monthly gain of 34,600 so far this year. Of note, the May gain represented 44 percent of the total growth, which is above the average of 36 percent since the start of the year. A positive sign for the office market.”
Norton added: “A slow-down is expected during 2019, compared to 2018, due to rising trade tensions and a tight labor market restricting hiring. Although this month’s weak job report could be a sign of slower growth, it is too early to call this a trend. The next few months, and especially what the Fed does with interest rates later this month, will tell which direction the economy is headed and the impact to the commercial real estate market.”
