Government’s jobs report a mixed bag

While the U.S. unemployment rate dropped in May to its lowest point since late 2007, job creation was weak, according to U.S. Bureau of Labor Statistics data.

The jobless rate of 4.7 percent was down three-tenths of a point from April but equal to the November 2007 figure. The lowest point in the last 10 years was 4.4 percent, most recently occurring in May 2007.

During May, employers added 38,000 jobs, much less than the average of 177,500 for the first four months of the year. May job growth was the weakest it’s been since 2010, when 52,000 jobs were lost in September that year before a 257,000-job boost the following month, according to BLS data.

Curt Long, chief economist for the National Association of Federal Credit Unions, responded to the contraction of the work force in a Wall Street Journal article.

“This was an unqualified dud of a jobs report,” he said. “The unemployment rate fell, but for the wrong reason as labor force participation declined for the second consecutive month. As for the Fed, this likely puts an end to the hopes of a rate hike in June and will probably shift market expectations to September.”

The BLS pointed to the health care industry as the largest creator of jobs in May. The sector added 46,000 jobs. Mining continued to be a sore spot and was one of the reasons job creation was so low. The industry lost 10,000 jobs last month, according to a news release.