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U.S. job growth stumbles in May, unemployment rate dips to 4.3%

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Total nonfarm payroll employment increased by 138,000 in May, and the unemployment rate was little changed at 4.3 percent, the U.S. Bureau of Labor Statistics reported today.

The growth rate of US has slowed down in the month of May and, the employment gains are not as strong as prior two months like previously reported.

"Disappointing", says Lynn Reaser, an economist at Point Loma Nazarene University in California.

"While jobs are being created, too many hardworking families are not seeing their paychecks increase because of a slow-growing economy", Brady said in a statement.

The unemployment rate edged down to 4.3 percent in May, the lowest level in 16 years.

Governments, businesses and employees can learn a lot from what the US economy and workforce endured during the great recession.

The survey of households from which the unemployment rate is derived also showed a drop in employment. Yet the decline stemmed more from people leaving the labor force than an increase in the number of people finding work.

There is some good news though.

Average hourly earnings have risen a middling 2.5% over the past year.

Are employers starting to run out of workers to hire? Monthly gains have averaged 121,000 the past three months, compared with 181,000 over the past 12 months.

But Mark Hamrick, Bankrate.com's senior economic analyst, said that Trump "vastly overstated jobs creation since he took office and the assessment has only worsened with the arrival of a new day and the latest employment report".

"Overall we still think that the job market is quite healthy, and although we still expect the pace of job growth on monthly basis to decelerate as few people are still on the sidelines".

These numbers really fly in the face of yesterday's ADP private-sector jobs report, where a robust 253K was reported.

In commodities, however, oil prices resumed their slide with key futures contracts down more than 2 percent amid worries that U.S. President Donald Trump's decision to abandon a global climate pact could spark more crude drilling in the United States, stoking a persistent glut in global supply. "It's just part of the ups and downs from month to month".

A hiring pullback reported in Friday's U.S.jobs data for May raises that prospect.

But the number of Americans not in the labor force - meaning they are neither working nor looking for work - increased by 608,000 to 94,983,000 in May, close to the record high of 95,102,000 in December 2016. Food services added 30,300 workers, while health care contributed 24,300 jobs.

Minutes of last month's Federal Reserve policy meeting showed rate-setters agreed to hold off raising interest rates in the world's biggest economy until they could be sure that a slowdown in growth seen in the first quarter was "transitory".

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