The U.S. economy added a measly 38,000 jobs in May, far below the 160,000 economists expected. The March and April job numbers were also revised down by 59,000 jobs. That means the U.S. economy added an average of just 116,000 jobs per month over the last three months, reflecting a significant slowdown from last year's average monthly growth of 229,000 jobs. This is partly due to "the Verizon effect," as nearly 40,000 workers went on strike in April and were idle for the payroll survey period. Unemployment dropped to 4.7 percent in May from 5 percent in April, but largely because the labor force participation rate fell.
Federal Reserve policy makers will likely use this data going into their June 14-15 meetings, where they will decide if it is appropriate to again raise the benchmark interest rate.
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