Labor Report: 75,000 Jobs Added, 3.1% Wage Growth, PT to FT Work +299,000…

The Bureau of Labor Statistics (BLS) provides the May jobs report.  Top line job gains were moderate at 75,000 and the unemployment rate holds steady at 3.6%.  However wage growth of 3.1%, and a monthly shift of 299,000 jobs from part-time to full-time reflects tight labor market in specific Main Street (blue and white collar) jobs.

The overall gain of 75,000 for May is low considering the economic growth. However, a review of the underlying data tells a story of a tightened labor pool; specifically inside the Main Street, middle-class, blue and white collar labor market.  [Table B-1]

Overall wage growth of 3.1% is very strong, and driven primarily by increased wages in “non-supervisory” payroll; ie. the actual workers (non mgmt). May was the 10th straight month with annual wage gains of at least 3 percent. Wages for non-supervisory workers continue to rise at a faster rate of 3.4 percent.

With inflation remaining low (1.4%); and assuming inflation is unchanged in May; the 3.4% non-supervisory wage growth, at current wage rates, is equivalent to nearly $900 per year in real wage growth for a blue-collar worker at 40 hours per week. [Table B-8]

We see the second large indicator of a tight Main Street labor market in the shift from part-time to full-time employment:

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) declined by 299,000 in May to 4.4 million. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs. (BLS Link)

In addition to the wage growth, the PT to FT shift is a key metric. You might be familiar with how many people in the Obama economy were shifted from Full-Time status to Part-Time status as a result of prior administration policy (Obamacare, etc.).  The chief complaint was people having to take two PT jobs instead of one FT job etc.

We are now seeing a reversal pattern where part-time workers are being shifted into full-time positions. In the past 12 months 565,000 people have shifted from PT to FT.  With more hours and higher wages it is Main Street workers who are benefiting.

  • Employment in professional and business services continued to trend up over the month (+33,000) and has increased by 498,000 over the past 12 months.
  • Employment in health care continued its upward trend in May (+16,000). The industry has added 391,000 jobs over the past 12 months.
  • Construction employment changed little in May (+4,000), following an increase of 30,000 in April. The industry has added 215,000 jobs over the past 12 months.
  • Employment showed little change in May in other major industries, including mining, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities, leisure and hospitality, and government
  • (Source)
This entry was posted in Big Government, Budget, Donald Trump, Economy, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

53 Responses to Labor Report: 75,000 Jobs Added, 3.1% Wage Growth, PT to FT Work +299,000…

  1. Nick the Deplorable says:

    Need to account for the weeks of tornadoes and flooding. That probably dropped the number by 50k.

    Liked by 6 people

    • Kintbury says:

      I would think that the movement from part time to full time employment is very significant.
      People no longer needed two jobs to survive.

      Liked by 6 people

      • 3rdday61 says:

        Kintbury,
        Between yours and Nick’s comment above, there’s more wisdom combined in three sentences, than is exhibited in all of the MSM.

        Liked by 9 people

  2. littleanniefannie says:

    Heard Charles Payne say the problem is we are at 90+% employment and many of the unemployed are not qualified for the available jobs. As he said, that’s a good problem to have!!

    Liked by 7 people

    • Skippy says:

      Understand but still for feel for the unemployed. Here are good wishes for the part time to move to full time and for the unemployed to consider (remedial) training. Let’s keep the USA moving forward!

      Liked by 4 people

      • 3rdday61 says:

        We’ll keep it moving Skippy. It amazes me that these freakin traitors cheer for bad news and hinder We The Peoples progress,as a nation yearning for prosperity, like it’s some sort of sport. It’s absolutely sick. It is a simple basic fact that the better ONE person does, the better we ALL do.

        Liked by 4 people

      • davidb says:

        @ Skippy…keep in mind that there are people who are of working age that DO NOT want to work. They will just mooch off others and the Goobermint. I do feel bad for those that Do want to work, but circumstances such as child care, transportation, or disabilities prevent them from being employed.

        Liked by 1 person

        • redridge45 says:

          Some also inherit and are able to live within their means…

          Like

          • wondering999 says:

            This is true… some people inherit. And some have the opposite situation. The person who comes immediately to my mind is a young woman I worked with, a woman whose mother was addicted to drugs. Her mother died young, leaving behind a youngest sibling disabled by brain damage from the mother’s drug use.
            This hardworking woman married and began her own family at a young age, possibly to make up for her own exploded original family. This bright but under-educated woman has four children, and cares for her disabled sibling. She managed to graduate from an evening high school while caring for young children, and works hard, shouldering enormous amounts of overtime caring for disabled adults (which leaves her sons home alone and vulnerable to gang predations, by the way)
            Some people inherit, and some people are “disinherited”, cut off at an early age from the resources many older people take for granted. That situation is why I am in favor of free/affordable community college, especially weekend and evening classes that make space for working parents to increase their abilities. Why would it cost more than K-12 education? It should actually cost less, since there is less liability/supervision involved

            Liked by 1 person

    • Baycity Duckhunter says:

      Several friends in positions to hire folks for very good paying IT jobs – are finding it VERY difficult to find folks to hire in Dallas area. They are having a hard time getting staff to do additional projects, so unable to get all their new initiatives done. Good time to be skilled at whatever IT people do. MAGA!

      Like

      • 3rdday61 says:

        Baycity,
        It’s an old dilemma, new to this time. It takes time to react and adjust to growth. Especially since we had 8 years of none of it. In car terms, we’ve gone from the car sitting in the garage with a dead battery, to charging the battery and firing it up. We’re basically still at idle speed, warming up all the systems that have been dormant. No worries. From my perspective, the US economy is like a 440 six pack. And we’re just getting it warmed up.

        Liked by 2 people

    • Baby El says:

      Re AnnieFannie ” we are at 90+% employment and many of the unemployed are not qualified for the available jobs”

      When I started my first professional job in ’88, they hired talented people and spent time training them for the work needed.

      As time progressed, expectations have become that you already knew the job and were willing to work for 80% of the usual pay. Many employment listings became so stupid that they wanted 5 years experience for a technology that was 3 years old.

      There is no shortage of people willing to work for good pay, just a shortage of employers willing to pay or train good, hard working Americans!

      Liked by 1 person

    • spren says:

      With all of changes taking place in employment regarding pensions and other benefits, coupled by the tight labor market, there must be extraordinary churn taking place in many businesses. With no lure of the long-term benefits obtained from remaining with the same employer over many years, workers are probably now very short-term focused and always looking for the next better opportunity. I believe this is an entirely new dynamic from what we have historically experienced.

      Like

  3. Marygrace Powers says:

    Nothing short of a Herculean effort
    by POTUS to reverse the destruction
    caused by the Obama Administration/
    God Bless our VSGPDJT/MAGA + KAG.

    Liked by 12 people

  4. MfM says:

    What great news!

    Yet according to the leftists… this is because of all the work Obama did! (Not)

    They also are quick to add “What about the the National Debt? Trump said he’d get rid of it… but it’s risen. The economy is doing the best it’s been in years and it’s moving in the right direction. Yup it would be nice to have the Debt gone, but he needs help from Congress to do much of that.

    Liked by 2 people

    • gawntrail says:

      It doesn’t really matter. We’re not going to change any of their minds. Besides, how do you have a rational discussion with irrational people. You’re better off discussing the nuance between beige, tan, and khaki with your cat.

      Like

      • 3rdday61 says:

        Gawntrail, Part of me wants to tell the idiots off, tell them that you have to have actual economic growth before you can start pilfering any excess to pay down debt. But then I realize that most of them have never even experienced a functioning economy before. I hope they take notes.

        Liked by 1 person

        • gawntrail says:

          I hear you….frustrates me to no end. But, our esteemed colleagues on the other side of the divide thought yelling at the sky was a meaningful gesture. Can you imagine a fact based discussion with one of them?

          Like

          • 3rdday61 says:

            Yeah, start with something like ‘So,Miss Snowflake tell me, what color is the sky in your world?’
            Probably be helpful to establish whether or not we’re on the same planet.

            Like

    • grlangworth says:

      You cannot address the national debt before you address the nation’s economy: You have to create the money before you can pay off the debt ….simple as that.

      Like

  5. boomrx says:

    “congressional help”(in regards to this president) is the world’s most perfect oxymoron.

    Liked by 4 people

  6. Luke of the D says:

    Heck yeah! The economy is ROARING! Thank you President Trump, for fighting for America First! MAGA!

    Liked by 4 people

  7. I am going to miss Mr. Hassett and his infectious smile!

    Liked by 5 people

  8. Ghost says:

    Observations from a smaller limb.

    Q/Q :
    Revised Productivity and Costs first quarter:

    Non-farm productivity increased +3.4% while labor costs decreased 1.6%.

    Sector breakdown:
    Non-farm:
    Previous quarter: +3.4%
    A year ago: + 2.4%

    Business:
    Previous quarter: +3.5%
    A year ago: +2.4%

    Manufacturing:
    Previous quarter: +0.4%
    A year ago: +0.8%

    Durable manufacturing:
    Previous quarter: -0.6%
    A year ago: +1.0%

    Non-durable manufacturing:
    Previous quarter: +1.6%
    A year ago: +1.1%

    https://www.bls.gov/news.release/prod2.nr0.htm

    😎

    Liked by 3 people

  9. Publius2016 says:

    America is open for business…The Dimms are desperate for an issue so of course Alabama (deep state central) offers crazy abortion bill…if 45 holds firm on 5% Mexico Tariff…40 state sweep is possible!

    Liked by 3 people

    • wondering999 says:

      Amen. Please ignore the abortion controversy that the Swamp trots out to inflame the populace. You can have a YUGE impact on the decisions of doubtful new parents by supporting “Save the Storks” organization and organizing “scholarships” for daycare and school lunch programs (if you are in a district that throws away lunches in front of children if their parents didn’t pay — change that! Disgraceful! The kids can’t control their parents!)

      Other resources that help families — thrift stores and organizations that clean and recycle furniture including cribs, potties, car seats etc. All those items are expensive and essential, but generally not used for long

      Like

    • Robert Smith says:

      Democrat version of America is open for business is Loral-China and Uranium One-Russia.

      Like

  10. Somebody’s Gramma says:

    Curious to know if the teacher strike in CA had/has any effect on the numbers. According to the dept of Labor website, if they strike thru an entire pay period, looks like they are counted as unemployed. Wouldn’t put it past the Powers that Be to instigate a strike just to wreck the numbers because Orange Man Bad.

    Liked by 2 people

    • wondering999 says:

      Yes and wouldn’t it be wonderful it more people could organize AROUND them so that students are no longer enrolled in gang-ridden schools, but can be homeschooled by grandma/grandpa/auntie etc. Some schools work against families because of gangs and teachers who indoctrinate unworkable theories

      Like

  11. Dennis Leonard says:

    They are talking out both sides of their mouth,this will cover our a**es boys,
    “The economy might be slowing and recession risks are rising, but experts don’t think the US’ long streak of employment growth has ended yet. The Labor Department will release the May jobs report tomorrow morning.

    Here’s what economists polled by Refinitiv anticipate:

    185,000 jobs added in May
    Unemployment rate holding at 3.6%
    Average hourly earnings growth is expected to come in at 3.2%”

    “The market may now be pricing in a roughly 70% chance that the Federal Reserve will cut rates at its meeting at the end of July. But Simona Mocuta, a senior economist with State Street Global Advisors, thinks investors are way ahead of themselves.”

    “Stocks climbed to session highs in the last hour of trading following a Bloomberg report saying that the United States could delay import tariffs on Mexican goods, which are supposed to kick in on Monday, June 10, as time is running out.”

    Liked by 1 person

    • gawntrail says:

      The only delay those tariffs are going to have is Mexico paying them. Full Economic Warfare. Every other strategy attempted has failed. THIS ONE WORKS.

      Break them to their knees, extract what we want/need, then slowly remove leverage. POTUS has got this. I have his back…… y tu?

      Liked by 2 people

    • 3rdday61 says:

      Dennis, I get a kick out of the pundits who opine dutifully at every “news” flash that crosses the wires. It’s like omg, omg if they start the tariffs on time the market will, like, go down or something. omg ,omg. Cue the tariff countdown clock…
      Hope everybody has a great weekend!!!

      Liked by 1 person

  12. Eric says:

    And so ends the false Leftist narrative that President Trump is only creating part-time jobs.

    Liked by 3 people

  13. Dee Paul Deje says:

    Liked by 3 people

  14. Tazok says:

    No need to sugar coat it, the data is bad because of Trade Wars. The NFP forecast was 175k, so 75k is really soft. Jobless claims and ADP were below expectations.

    The MoM wages at 0.2% missed forecast of 0.3%.

    The unemployment rate increased slightly on an unrounded basis. The Fed is thinking of cutting as early as in July. This is not a great place to be 16mth out.

    Trump is wavering on MX tariff after the data while Pence said 5% is happening. Hopefully they can secure the border.

    Like

  15. ristvan says:

    When I studied economics, structural ‘full employment’ was thought to be 3.5-4% unemployment because of stuff like injury recovery, transitions between jobs, skill set/training…

    We are there. There cannot be strong jobs growth when there are no workers able to fill the jobs. The pt to ft shift is one tight labor market indicator. Another is job vacancies, reported to be 6 million in May versus 6.8 million ‘unemployed’. That is almost certainly mostly a skills mix issue that PDJT’s training initiative (EO on workforce development) will sort out over time.

    Liked by 7 people

    • An American says:

      ristvan, you are exactly right! 👍

      Like

    • SwampRatTerrier says:

      Get rid of all the Millions of Useless government jobs (i.e., Federal, State, County, City) and VIOLA! – a Huge increase in the available work force (after they’ve gone through “re-education” of course).

      Liked by 1 person

    • Dutchman says:

      ristvan
      Good point, but not sure how much those calculations count the traditionally chronic unemployeed?
      Teens, Minority teens and ex cons is what I’m thinking.
      IIRC, awhile back PDJT was touting a program for getting felons employed.

      Went thru a similar program, 40 years ago when I got out. Worked great for me.
      Oh, and the disabled as well. With such a tight labor market, employers looking at categories of people they wouldn’t consider in a ‘looser’ job market is the point.

      One simple comparison I’m sure I’m not the only one that noticed, months ago.

      The # of people newly employed, and seperate headline on the,# dropping of food,stamps. Same #, I think it was 5 million, a couple of months ago.

      Anyway, your point overall is certainly valid, and fully supports,PDJT’s oft repeated “We WANT immigrants, we NEED immigrants, we just want them to come in legally, and based on MERIT.

      If only he had the authority of a CEO with majority stock ownership, just THINK where we would be!

      Liked by 1 person

      • ristvan says:

        Dutchman, a personal anecdote backing up your good points.

        While a very senior exec at MOT, I made a toehold acquisition in RFID of Indala (rfid access control) in San Jose, CA. Commuted out there from Chicago 3 days a week as GM for the first year to smooth cultural transition from founder entrepreneur ‘anything goes’ to ‘corporate’ world. An early ‘easy’ initiative was to move rfid tag assembly from a poor quality 75 person Philippine operation back to San Jose in the new expansion facility we leased. Simple linear 8 station robotic operation—tag bottom place, chip place, antenna coil place, wire bond the two together, test and burn unique ID into chip, tag top place, ultrasound seal. Two shifts needing about 12 workers.

        Mot had an absolute requirement that all US factory workers had to read and write English at seventh grade proficiency. Reason was so we could train them in six sigma QC, safety, and other ‘important’ stuff. HR had to administer ~415 exams, all to high school or community college grads, to get 12 who passed and could be hired. In california’s Silicon Valley!

        Liked by 6 people

        • Great post, ristvan.
          Incredible challenges ahead to rectify.
          We need to MERGE Department of Education INTO Department of Labor.
          Then fund outcomes.

          Like

        • Dutchman says:

          ristvan,
          Can barely follow most of what you are saying, with the technobabble, but get the gist.

          Similarly, I remember when Construction and woodworking companies started giving applicants tests, to see if they could read a TAPE MEASURE.
          Then, all tape measures started coming with feet/inches along one edge, meters/centimeters on the other.

          By the,way, following your lead; after you ‘came out’ as ‘more than a lawyer’ (farmer, who knew!) I decided to come out as more than an ex-con. Feels good, overall.

          Liked by 1 person

    • zorrorides says:

      Ristvan, T Y. (example) American corporations have resisted pulling American workers up to train and fill IT and customers service positions, preferring foreign outsourcing and visas. There is still a vast untapped need for US manufacturing and production workers too,

      I think current 3.6% unemployment is a much different animal than the “3.5 to 4% structural full employment” theory that was taught when we were students. Economists were looking backwards in the 1960s when this rule of thumb came about. Has anyone examined this theory closely in the last thirty years? There’s no adjustment factor to relate 3.5% now, in this population, to an appropriate number understood in 1970s.

      My thrust is now we have many workers-to-be uncounted on the sidelines, waiting for rationality to reform our over-governmented economy. Cheers for Mr Trump.

      I’m retired on a small pension and SSA. I look forward to meaningful employment, in a bricks and mortar, Main Street, practical product type line of work. We’re getting there!

      Like

    • Baby El says:

      ristvan – I think this has changed somewhat. With the advent of the internet, jobs can be posted and filled in a much shorter time frame, so there is greater worker mobility.

      Add to that, the standardization of office type productivity software and you have even greater interchangeability.

      Granted, you can only train truck drivers so fast, but even trucks are easier to drive than ever.

      So perhaps the number is a bit lower. There is always a small percentage of people unable to work, but there are still a lot of people who would work for a better life if available.

      Like

      • wondering999 says:

        One more thing that will help — ditch the class consciousness that sneers at honest labor
        A Marxist-educated college-degree’d office manager who looks down on front-line working people, can set up conditions that make workdays frustrating, and make it nearly impossible to get good work done. This can demoralize workers who are prone to being demoralized already — hope that workforce initiatives include how to be an effective leader.

        Did you notice the Legal Insurrection article today about Oberlin vs. town bakery? The academic leadership of Oberlin were contemptuous of the bakery owners and workers. Very poor leadership though highly compensated

        Like

  16. Arrest Soros says:

    I’m willing to bet that the month of May is an aberration (it’ll be revised up anyway).
    Expect June to be well up, maybe over the 200,000 mark.

    Please note that people moving from PT to FT doesn’t necessarily mean they got extra hours at their work place. It also means people left their PT job and got a FT job elsewhere.
    The business losing a PT worker isn’t necessarily in a hurry to replace them (loss is minimal, not like losing a Full Timer).
    I expect these businesses that lost PT workers will employ in the coming months. They may have to offer better pay/conditions or more hours to attract workers.
    Some of these workers they’ll attract will be people who already have a FT job, but want some extra PT work to pay off debt, save etc.

    In short, expect June to offset the low numbers of May.

    Like

  17. #Statura_co says:

    President Trump is doing great for American Jobs. The UK jobs have improved by voting leave from the Bilderberg union. But our Parliament is corrupt we could do with him here in the UK https://wp.me/paZ7x4-sx

    Like

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