May payrolls dropped 345,000 and the March-April revisions totaled an increase of 82,000, the first positive revisions since last summer. This is better than expected but still indicates a declining economy.
There were moderating hours and wages — average hourly earnings rose 0.1% for a 3.1% gain over the year — and a 0.5 point jump in the civilian unemployment rate to 9.4%, highest since the summer of 1983.
May’s payroll composition included: construction down 59,000, manufacturing off 156,000, retail 17,500 lower, transportation a 14,500 decrease, finance off 30,000, temporary help down 6,500, and recreation off 10,300. Health care was up 23,500 and government fell 7,000.
— Market News International