Missouri labor market conditions improve in May

Unemployment in Missouri decreased substantially in May, dropping by half a point to 4.5 percent from 5 percent in April. The state also experienced a much greater seasonal improvement than expected, resulting in a four-tenths of a point decrease to 4.8 percent in its seasonally adjusted unemployment rate.

The nation's seasonally adjusted unemployment rate in May was 5.8 percent, down two-tenths of a point from April's figure of 6 percent.

Nonfarm payroll employment data are not showing much sign of recovery. However, employment did increase by 4,700 jobs between April and May, concentrated in seasonal industries like retail trade and recreation services.

On a seasonally adjusted basis, employment dropped by 5,500 jobs to 2,687,600. The only industries showing seasonally adjusted gains were in the service sector.

Even though employers have continued to shed jobs, the monthly changes have become much smaller than they were, suggesting a stabilizing labor market. Using the unadjusted data, May employment was down by 57,000 jobs from a year earlier, a drop of slightly more than 2 percent. Manufacturing lost 22,700 jobs and construction employment is down by 8,600 jobs, with most of the losses occurring this year.

In the service industries, there have been mixed results. Health services employment is up by 4,900 jobs, while most other industries report losses, including business services (down 5,500 jobs), personal services (down 2,000 jobs), amusement and recreation services (down 2,000 jobs) and the lodging industry (down 1,500 jobs).

In the public sector, state government employment in May was 5,900 jobs lower than in May 2001, which was partly offset by a gain of 3,500 in local government, including public schools.