US gains fewest jobs in 5 years, rate hike unlikely
business Updated: Jun 04, 2016 06:31 IST
WASHINGTON: The US economy created the fewest number of jobs in more than 5-1/2-years in May as manufacturing and construction employment fell sharply, suggesting slippage in the labour market that could make it harder for the Federal Reserve to raise interest rates. Non-farm payrolls increased by only 38,000 jobs last month, the smallest gain since September 2010, the Labor Department said on Friday. Employment gains were also restrained by a month-long strike by Verizon workers, which depressed payrolls by 34,000 jobs. Underscoring the report’s weakness, employers hired 59,000 fewer workers in March and April than previously reported. The unemployment rate fell to 4.7% in May, the lowest level since November 2007.