In a vastly different estimate on employment gains in May from the ADP’s preliminary report, the Labor Department released their official report indicating less than 600,000 jobs were added in the last month.
The bleak report confirms payroll employment rose by 559,000 last month while unemployment decreased by just 0.3 percent. US unemployment now sits at about 5.8 percent.
Like the ADP report indicated, the most significant job gains were seen in leisure and hospitality, education, healthcare, and social assistance.
The most positive takeaway is that among the unemployed, temporary layoffs are “down considerably,” after declining by 291,000 bringing the total number down to 1.8 million.
Some experts like Andrew Hunter, co-founder and economist at job search group Adzuna, believe that as federal unemployment benefits expire in the coming months, jobs will begin to gain at a much faster rate.
“Hiring is at the highest level that we’ve seen in the last four years, however, a full recovery is being held back by a shortage in job candidates and their hesitance to get back into the labor force,” said Hunter, according to The Street. “With federal unemployment benefits due to expire after Labor Day and a handful of states already attempting to coax candidates back by paying for workers’ hiring bonuses, it’s very likely that the recovery will pick up over the next few months.”
Since average wages showed an increase of two percent, according to the Labor Department’s report, this could also serve as an incentive for more Americans to return to work amid a shortage in job seekers.