Job gains whiff, unemployment rate falls to new post-recession low

The US economy added 138,000 jobs in May while the unemployment rate fell to a 16-year low of 4.3%, according to the Bureau of Labor Statistics.

Economists had forecast 182,000 nonfarm payrolls and a 4.4% unemployment rate, the lowest since 2007, according to a Bloomberg survey.

The unemployment rate fell as participation in the labor force also declined, to 62.7% of people that are either working or job hunting, from 62.9%.

Wage growth was little changed in May. However, economists had expected this because of a calendar quirk: the survey week for the jobs report, which usually includes the 12th of the month, was different from the week of May 15, when many workers get paid and would receive any raises.

Average hourly earnings increased by 0.2% from April, and rose 2.5% year-on-year.

Despite the miss on job gains, this report should provide the final green light for the Federal Reserve. It meets later in June and is expected to raise borrowing costs for the second time this year.

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On the floor of the New York Stock Exchange
Traders gather at the post where Snap Inc. is traded, just before the opening bell on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 11, 2017. REUTERS/Brendan McDermid
Traders gather at the post where Snap Inc. is traded, just before the opening bell on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 11, 2017. REUTERS/Brendan McDermid
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2017. REUTERS/Brendan McDermid
A trader works on the floor of the New York Stock Exchange at the closing bell of the Dow Industrial Average, May 10, 2017 in New York. Wall Street stocks dipped early Wednesday, with Disney shares sliding on worries about its ESPN network, and as the market weighed President Donald Trump's shock firing of FBI director James Comey. / AFP PHOTO / Bryan R. Smith (Photo credit should read BRYAN R. SMITH/AFP/Getty Images)
A video board displays the day's closing numbers at the New York Stock Exchange after the closing bell of the Dow Industrial Average, May 10, 2017 in New York. Wall Street stocks dipped early Wednesday, with Disney shares sliding on worries about its ESPN network, and as the market weighed President Donald Trump's shock firing of FBI director James Comey. / AFP PHOTO / Bryan R. Smith (Photo credit should read BRYAN R. SMITH/AFP/Getty Images)
Traders work on the floor of the New York Stock Exchange at the closing bell of the Dow Industrial Average, May 10, 2017 in New York. Wall Street stocks dipped early Wednesday, with Disney shares sliding on worries about its ESPN network, and as the market weighed President Donald Trump's shock firing of FBI director James Comey. / AFP PHOTO / Bryan R. Smith (Photo credit should read BRYAN R. SMITH/AFP/Getty Images)
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, May 8, 2017. U.S. stocks slipped from all-time highs, while Europe's common currency weakened following a convincing defeat of populism in France's presidential election that investors had already priced in. Photographer: Michael Nagle/Bloomberg via Getty Images
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 5, 2017. U.S. stocks fluctuated with the dollar and Treasuries as a rebound in hiring added to optimism that the economy is on firm footing, boosting speculation the Federal Reserve will raise interest rates. Photographer: Michael Nagle/Bloomberg via Getty Images
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