Payrolls Up a Mere 54,000; Jobless Rate Rises to 9.1%

WASHINGTON — U.S. employers added 54,000 jobs in May, with 83,000 private workers being hired, the smallest private-sector growth in 11 months, while the unemployment rate increased to 9.1%, the Labor Department reported Friday.

Payrolls for April and March were revised lower by 39,000 jobs. April payrolls were reduced to a gain of 232,000 from the 244,000 increase reported last month. March payrolls were revised to a 194,000 jump from a previously reported 221,000 rise.

In May, job growth paused or fell back across several sectors. Manufacturing payrolls shed jobs for the first time since October, declining by 5,000.

Government employment remained weak, shedding 29,000 jobs, the seventh consecutive monthly decrease, as the state and local sector cut 30,000 payrolls. The leisure and hospitality sector fell by 6,000 jobs.

The unemployment rate ticked up to 9.1%, the highest since December, when it was 9.4%.

The total labor force increased by 272,000 for the month.

Economists polled by Thomson Reuters expected an increase of 185,000 payrolls and 210,000 private payrolls, according to the median estimate. The economists expected the unemployment rate to be 8.9%.

These estimates were made before initial jobless claims and a weak private payrolls report on Wednesday caused many economists to lower their employment estimates.

Average hourly earnings increased six cents to $19.43. The workweek for all private workers stayed at 33.6 hours for the fourth straight month.

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