Official figures show that US employment grew at its fastest pace in 10 years in May, lifted by recruitment for the country's census, but hiring by private employers slowed sharply.
The Labor Department said 431,000 new jobs were added 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 labour 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.
The worse than expected figures sent stock markets lower.
Data for March and April were revised to show 22,000 fewer jobs created than previously reported. May's employment gain lowered the unemployment rate to 9.7% from 9.9% in April. Analysts had expected a total rise of 513,000 and a 190,000 increase in private jobs.
The US economy has now grown for three quarters in a row and the recovery from the worst recession since the Great Depression of the 1930s is broadening out. But unemployment is expected to remain high through the year as the millions of people who lost their jobs during the recession seek work.
The improving jobs market may encourage those who dropped out of the labour force to resume their search, which could keep the jobless rate elevated because workers are counted as unemployed only if they are actively looking for work.
Outside the census, hiring slowed significantly from previous months. The dominant services sector showed a rise of 37,000 jobs after surging 156,000 in April. The goods producing sector created only 4,000 new jobs following 62,000 jobs in April. This was as construction employment fell 35,000 after gaining 14,000 in April.
Recruitment for the population count saw government employment rising 390,000, overshadowing the drag from jobs cuts in cash-strapped states and local authorities.
The White House said this afternoon that today's figures showing a decline in the unemployment rate were 'encouraging' even though they were worse than expectations and sent financial markets tumbling.
