U.S. adds jobs, unemployment drops slightly in May

WASHINGTON — Total nonfarm payroll employment increased by 138,000 jobs in May, according to the latest figures from the Bureau of Labor Statistics (BLS).

The unemployment rate inched down to 4.3 percent from April's 4.4 percent, the BLS said in the employment report issued June 2.

The job sectors that saw the greatest gains in May were professional and business services (up 46,000), food services and drinking places (up 30,000) and health care (up 24,000). Most other sectors, including manufacturing, wholesale trade, retail trade, and transportation and warehousing, saw little change, the BLS said.

The low job numbers from the BLS contrast greatly with those from the payroll services firm ADP Inc. According to the ADP report released June 1, the U.S. gained 253,000 private sector jobs in May.

The biggest gains, ADP said, were in medium-sized businesses (50 to 499 employees), with 113,000 new jobs for the month. Small businesses (1 to 49 employees) gained 83,000 jobs, and large businesses (500 or more employees) grew by 57,000 jobs, it said.

There were 48,000 new goods-producing jobs in May, including 37,000 in construction but only 8,000 in manufacturing, according to ADP. Among 205,000 new service-providing jobs, the largest gains were in professional/business services (up 88,000 jobs), trade/transportation/utilities (up 58,000 jobs) and education/health services (up 54,000 jobs), it said.

Franchise employment increased by 18,200 jobs, including 5,800 in auto parts and dealers, according to ADP.

Meanwhile, the National Federation of Independent Business (NFIB) reported higher job creation among its members in May, according to the NFIB Jobs Report released June 1.

"Firms are adding workers, creating new positions and increasing compensation to attract better applicants and keep their best performers," said NFIB Chief Economist William C. Dunkelberg. "If there is a dark cloud in the data, it is that there aren't enough qualified workers to fill the available jobs."

However, the Alliance for American Manufacturing (AAM) conveyed the opposite message. The AAM noted that the BLS recorded 1,000 lost jobs in manufacturing for May, after reporting gains of more than 70,000 jobs in that sector since December 2016.

"The loss of manufacturing jobs in May is a stark reminder of the challenges that face factory workers: declining auto sales, a persistently high goods trade deficit, and muddled fiscal policies," said AAM President Scott Paul.