Daily News

View All News

US temp jobs jump in May, overall job growth beats expectations

June 05, 2015

The US had 20,100 more temp jobs in May than April, up from an increase of 16,100 in April based on revised numbers, according to seasonally adjusted data from the US Bureau of Labor Statistics.

In addition, the temp penetration rate in May rose to 2.049% from April’s rate of 2.039%. The penetration rate reflects temporary help services jobs as a percent of total US nonfarm employment.

The US overall added 280,000 nonfarm jobs in May, a substantial improvement from the 221,000 added in April (April’s figure was revised downward from 223,000). Job gains occurred in professional and business services, leisure and hospitality, and healthcare. Mining employment continued to decline.

Bloomberg reports the increase exceeded its median forecast of 226,000.

“This only reinforces the view that the economy is a lot healthier than the GDP data imply,” said Joe LaVorgna, chief US economist at Deutsche Bank Securities Inc. in New York, whose projection for a 275,000 gain was among the closest in the Bloomberg survey. “I’m pretty confident the unemployment rate will go back down again soon.”

Job expansion continues to surprise, according to The Conference Board.

“In an otherwise disappointing spring, in terms of macroeconomic data, the employment numbers in April and May are suggesting that there is no slowdown in job growth,” The Conference Board stated. “The solid employment growth, despite weak GDP growth, suggests that labor productivity is likely to continue to be slow to nonexistent in the second quarter.”

The US unemployment rate edged up to 5.5% in May from 5.4% in April. However, the college-level unemployment rate, which can serve as a proxy for professional employment, in May was unchanged from April at 2.7%.

Click on charts to enlarge.