"Since January, the unemployment rate has declined by 0.5 percentage point, and the number of unemployed has decreased by 774,000", the BLS said. The highest employment rate was found in El Centro, California at 19.2 percent.
"A lot of economists believe that once we eventually get a good one-half or 1 percent below full employment, wages will start to accelerate very quickly", Steve Rick, chief economist at CUNA Mutual Group, told CBS News ahead of the latest jobs report.
Companies are now choosing from among a smaller pool of applicants, especially for those who have the education or skills they need. The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged over the month at 1.7 million and accounted for 24.0 percent of the unemployed.
As per the Labor Department, The payrolls of nonfarm have been increased to 138,000 last month due to government, manufacturing, and retail sectors lost their jobs. The employment-population ratio edged down to 60.0 percent in May. Job gains have averaged 121,000 over the past three months, compared with an average of 181,000 over the past 12 months.
In May, white-collar firms, health-care providers, restaurants and energy producers led the way in hiring.
Annual growth in average hourly earnings has been so-so in recent months. Hiring was still enough to help keep pushing unemployment lower.
In May, employment in professional and business services continued to trend up (+38,000).
Numerous jobs that have been added over the past year are in the generally lower-paying leisure and hospitality industry hotels, restaurants and amusement parks.
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Job gains in March were revised down to 50,000 from 79,000 while April's figures were also lowered to 174,000 from 211,000.
So far this year, the USA has added 810,000 jobs. Last month's decline came as people left the labour force. And earnings growth, which showed signs of accelerating last year, seems to have leveled off at a rate of about 2.5 percent per year.
Still, the labor market overall is the healthiest it's been in more than a decade, and the economy shows no signs of slowing down. Hiring was still enough to help keep pushing unemployment lower.
Analysts were split over whether the May report was encouraging or disappointing. The current expansion has lasted 96 months and is now the third longest since World War Two.
David Berson, chief economist for Nationwide, was much more negative.
February was the first jobs report during President Donald Trump's tenure, and since then the USA economy has added 522,000 jobs. For workers who aren't supervisors, average hourly pay has risen just 2.3 percent.
Charles Mills, who works in marketing and sales at Outdoor Landscaping and Design in Pennsylvania, said the economy is probably the best he can recall since the early 2000s before a nationwide real estate bubble burst. Job creation is not just a function of White House policies.