June 10, 2019
The economy slowed more than expected during May 2019 with the addition of only 75,000 news jobs, down from 224,000 in April, the Labor Department reported Friday.
The total is down from the average monthly gain of 164,000 jobs since the start of the year, even as the unemployment rate remains at a 50-year low.
In the state and local government sector, weakness was felt with a loss of 19,000 jobs. In the retail sector, 7,600 jobs were eliminated, mostly in the apparel sector as a number of companies are closing stores due to competition from online shopping. Growth was seen in the professional and business services sector with the addition of 33,000 jobs, down from the 62,000 added during April, but on par with the average monthly gain of 34,600 so far this year.
“A slow-down is expected during 2019, compared to 2018, due to rising trade tensions and a tight labor market restricting hiring,” said Elizabeth Norton, managing research director at Transwestern. “Although this month’s weak job report could be a sign of slower growth, it is too early to call this a trend. The next few months, and especially what the Fed does with interest rates later this month, will tell which direction the economy is headed and the impact to the commercial real estate market.”
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