Is 38K net job growth bad? It's not good

Employment Situation Report, Bureau of Labor Statistics

Another jobs report, more disappointment. May Non-farm payrolls revealed a meager 38K net new jobs created in the U.S. economy, with the U6 unemployment rate pegged at 9.7% (it is clear now the U3 rate of 4.7% is no longer relevant). Average hourly earnings increased just .2%, and weekly hours worked held steady at 34.5 hours. The labor force participation rate fell again to 62.6%, with employment population ratio unchanged at 59.7% (both lows since the 1970's). Table A-7 from the BLS shows the foreign born labor force in the U.S. grew again to 26.3 million, while the native labor force fell again. The labor force participation rate for foreign born workers is 65.2%, compared to 62.5% for native born workers.

If the Fed needed an excuse to delay the expected rate hike at their June meeting, they just got it. The sound you hear from the central planners in China is a collective sigh of relief.

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