Unemployment drops to 9.7%

The May job numbers are out:

The Labor Department said on Friday payrolls rose 431,000 as the government hired 411,000 workers to conduct the population count. That was the largest monthly increase since March 2000 and marked a fifth straight month of gains.

Private employment, a barometer of labor market strength, increased just 41,000 after rising 218,000 in April. Employers did increase hours, however, and the average workweek increased to 34.2 hours from 34.1 hours in April.

Payrolls data for March and April was revised to show 22,000 fewer jobs created than previously reported. May's hefty employment gain lowered the unemployment rate to 9.7 percent from 9.9 percent in April.

Analysts polled by Reuters had expected non-farm payrolls to rise 513,000 and private businesses to create 190,000 jobs. The jobless rate had been seen dipping to 9.8 percent.

So, expectations were a bit off. Fewer jobs were created, especially in the private sector and there's a tad less unemployment. Seems like a mixed bag.

Just keep in mind that the unemployment rate under counts the actual number of unemployed. Here's how the Bureau of Labor Statistics defines the term:

Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work.

This definition doesn't factor in the long-term unemployed.