Economics Update· Jobs - Jobs report not as bad as it looks, but still far from good

Economics Update

· Jobs - Jobs report not as bad as it looks, but still far from good -Private employers added a disappointingly meager 41,000 jobs last month after a boomier 218,000 increase in April. Despite the anemic hiring, the news on labor income growth was actually quite favorable, as the average workweek increased another 0.1 hour to 34.2 hours and average hourly earnings increased 0.3%, a refreshing bounce after three very soft months for wage growth. While the workweek increase is good news, an increase in full-time headcount would have been a more encouraging signal of business confidence in the strength of the recovery. Moreover, the breadth of the increase in the workweek was not impressive, as it was almost entirely concentrated in the manufacturing sector. All told, today's number leaves labor income growth tracking a solid 5.5% annual rate of increase in the second quarter, but the reluctance to take on new employees points to some continued caution on the part of would-be employers.