Fail. 95% of job growth in May was due to government hiring.
Despite 411,000 temporary US Census jobs, the unemployment rate fell to 9.7 percent from 9.9 percent in April. The disappointing numbers stock futures to extend their losses on Friday.
CNBC reported, via Instapundit:
US stock futures extended their losses Friday after a report showed fewer jobs were added to nonfarm payrolls last month and most of those were temporary census workers.
US employers added 431,000 jobs to nonfarm payrolls in May, but 411,000 of those were temporary census workers. The private sector added just 41,000 jobs: Manufacturing, temporary help and mining added jobs, while construction declined. That number was also well short of the more than 500,000 economists had expected. The unemployment rate, however, fell to 9.7 percent from 9.9 percent in April.
“This number is extremely disappointing,” said Todd Schoenberger, managing director at LandColt trading. However, he said, it should come as no surprise. “Considering first time jobless claims have been inching higher over the past four weeks … and GDP came in at a lackluster 3%, American companies are going to be reluctant to hire.”
Related… Census worker claims government job numbers are being inflated.