What employers need to know about the May Jobs Report

What employers need to know about the May Jobs ReportWhat employers need to know about the May Jobs ReportWhat employers need to know about the May Jobs Report Martis, contributorThe economy expanded by 75,000 jobs in May, according to the latest monthly U.S. Bureau of Labor Statistics jobs report. Average hourly wages increased by 6 cents, while the unemployment rate remained at 3.6%. Here are the headlines from Mays report.The Economy is a DynamicThe BLS reported a weak 75,000 payrolls in May, sharply lower than the 175,000 jobs predicted by Bloomberg economists.This is in contrast to the 224,000 jobs (revised) in April.Similarly, earlier this week, payroll processor ADPreported a small gain of 27,000 jobs in the private sector, marking a 9-year low since economic expansion began and the jobs market bottomed out.These rollercoaster changes can be a bit perplexing, but its important to remember that this is only a snapshot, and the economy isnt static. In theory, there could be as b ig a rebound in June after the disappointment today.Job GrowthServices Industry Employment Hits a 7-Month HighWith the addition of 33,000 jobs, the BLS report showed that the majority of employment gains occurred in the business and professional services sector.This jibes with data released earlier this week by the Institute for Supply Management (ISM)that showed a gauge of services industry employment increased by 4.4 points to 56.9%.This not only beats its two-and-a-half-year low of 55.5% in April, but also marks a seven-month high for the sector. (A reading over 50% is viewed as positive for the economy, and anything over 55% is considered exceptional).This surge demonstrates that the services sector has held up in the face of growing concerns about the impact of the Trump administrations trade wars with Mexico and China.Industries HiringFederal Reserve is Expected to Cut Interest RatesAhead of the BLS report, speculationbegan circulating that the Federal Reserve would consider a rate cut in the event of economic weakness.With Mays low job numbers pointing to a tightening labor market, its even more likely that rates will be slashed when policymakers meet later this month.This gives us a real sense of deceleration in the U.S. economy, Diane Swonk, chief economist at accounting firm Grant Thornton, told the New York Times.We knew this was occurring, but this could be a summer of discontent. It also gives the Fed a green light to cut rates.This can be seen as positive news for businesses, as lower interest rates gives consumers more money to spend, which can create a ripple effect of increased spending throughout the economy.Unemployment RatesEmployers are Tightening the Purse StringsWages continued to slowly build in May, with the jobs report indicating that average hourly wages increased by six cents, totaling $27.83. Over the year, average hourly earnings have grown by 3.1%.This proves that despite a tightening labor market- the unemployment held at a low 3.6%, while only 75,000 jobs were added- employers must find alternative ways to attract and retain employees.Employers should consider bulking up compensation packages with more benefits like flexible work options, wellness programs, and increase paid time off. Monsters 2019 State of the Candidate Surveyfound that 401(k)/retirement benefits was considered most important for American workers.Wage GrowthThe next jobs report will be released July 5, 2019, at 830 a.m. EST. In the meantime, see how can help drive job growth at your organization.