Washington, June 4 (DPA) The US jobless rate fell to 9.7 percent as the economy added 431,000 jobs in May, but the vast majority were temporary government hires and the private sector remains extremely weak, according to Labour Department figures released Friday.
The private sector added just 41,000 jobs in May, the department said in a report that disappointed markets. The government accounted for 390,000 net jobs, with staffing for the census, a population count that takes place every 10 years, adding 411,000 people.
US stocks plunged more than 1.5 percent at the start of trading Friday morning on Wall Street. Economists had predicted a gain of 536,000 jobs in May, according to a survey by Bloomberg News.
President Barack Obama sought to assure Americans that ‘we’re moving in the right direction’ during a speech to a truck dealership in Maryland shortly after the jobs report was released.
‘While we recognize that our recovery is still in its early stages and that there are going to be ups and downs in the months ahead … this report is a sign that our economy is getting stronger by the day,’ Obama said.
After a deep recession in 2009, the US labour market has added jobs for five straight months. But companies hired far fewer workers in May than hoped for after much stronger numbers for April and March.
The world’s largest economy gained 290,000 jobs in April – mostly in the private sector – and the unemployment rate stood at 9.9 percent.
Construction sector jobs fell again after showing some positive signs in the last two months. The beleaguered manufacturing sector was a mild bright spot, adding 29,000 jobs over the month.
