Economy

Economy adds 175K jobs in May; unemployment rate rises to 7.6 percent

by Vicki Needham - 06/07/13 1:57 PM ET

The economy added 175,000 in May while the unemployment rate ticked up to 7.6 percent.

The growth was in line with expectations, with figures for April revised down by 12,000.

{mosads}The report shows an economy continuing to grow, albeit at a sluggish pace.

The report from the Bureau of Labor Statistics revised job growth in April to 149,000 from 165,000, but revised figures for March up to 142,000 from an initial estimate of 138,000.

The data provided little sign that the automatic spending cuts known as the sequester and tax hikes agreed to earlier this year are slowing the economy, but the administration greeted the figures by calling on Congress to curtail the cuts.

“With the recovery gaining traction, now is not the time for Washington to impose self-inflicted wounds on the economy,” said Alan Krueger, chairman of the Council of Economic Advisers.

“The administration continues to urge Congress to replace the sequester with balanced deficit reduction, while working to put in place measures to create middle-class jobs, such as by rebuilding our roads and bridges and promoting American manufacturing.”

House Ways and Means Chairman Dave Camp (R-Mich.) used the jobs numbers to argue for a focus on long-term fiscal issues and an overhaul of the tax code.

“There is no one silver bullet, but two of the best things we can do is get our long-term debt under control and reform our tax code to make it more efficient and effective for families and employers.”

  ”I’m happy for those who found a job this month but remain disappointed with the slow growth,” said House Majority Leader Eric Cantor (R-Va.).

Cantor said the House-passed SKILLS Act and Keystone XL pipeline bills reflect his party’s willingness to step up job creation.

“I would hope that President Obama join us and begin to focus on economic growth with the same intensity as House Republicans.”

Retailers added 28,000 jobs last month, a signal that consumers are spending, and stores are ramping up to meet that demand.

The hike in the jobless rate from 7.5 percent is largely attributable to 420,000 people joining the labor force by looking for work. That is an increase from 210,000 in April. Overall, the labor force participation rate was little changed at 63.4 percent, and over the past year, has dropped by 0.4 percent.

Within the federal government, employment declined by 14,000 in May.

During the past three months, federal government employment has decreased by 45,000. The financially struggling U.S. Postal Service slashed 3,800 positions.

Hiring at the state and local government level increased enough to mostly offset the federal cuts.

Professional and business services added 57,000 jobs in May, while leisure and hospitality businesses added 43,000 jobs as hiring continues at hotels and restaurants. Healthcare and education businesses added 26,000 jobs.

Construction hired 7,000 workers, fewer than expected given the housing market’s accelerating improvement.

This story was posted at 8:37 a.m. and last updated at 9:57 a.m.

Tags Eric Cantor