May Payrolls Rise 78,000, Below Expectations

mployers added 78,000 workers to payrolls in May and the unemployment rate fell to 5.1%, the Labor Department said Friday.

The jobs gain was the smallest since August 2003 and was well below analysts’ estimates of 185,000 new non-farm jobs, Bloomberg reported.

Because employment levels drive so much economic activity, an increase in employment can help consumer confidence and spending patterns, which affect trucking demand.

Economists had predicted the unemployment rate to hold at 5.2%, Bloomberg said.

Manufacturing employment fell by 7,000, the eighth drop in nine months. Construction employment continued to grow, with jobs rising by 20,000 in May, following a 47,000 increase in April.

Service-industry employment, which includes retailers, banks and government agencies, rose 64,000 in May following a 232,000 gain in April. Most of those were in education and health services.

Incomes also increased in May, with hourly earnings gaining 0.2%, or 3 cents, after a 0.3% increase in April, Labor said.