Jobless Rate Hits 9.1%; Private Sector Payrolls Increase

Goolsbee noted that while “there are always bumps on the road to recovery, the overall trajectory of the economy has improved dramatically over the past two years.” He went on to note that initiatives put in place by the Obama Administration–such as the payroll tax cut and business incentives for investment—“have contributed to solid employment growth overall this year, but this report is a reminder of the challenges that remain.” The Administration, he said, is “focused on promoting exports, reducing regulatory burdens and making the investments in education, research and development, and infrastructure that will grow our economy and create jobs.”

But House Majority Leader Eric Cantor, R-Va., stated after the employment numbers were released that today’s jobs report is “disappointing” and shows that the nation’s economy “needs an injection of growth oriented policies to ensure that businesses can innovate, expand and begin hiring again.”

Under Obama’s watch, Cantor said, “Washington has tied the hands of small business owners with regulations that have made it harder to grow, and has spent money that it doesn’t have, leading to sustained unemployment over 8% and a national debt of more than $14 trillion. It is astounding that despite the warning signs and economic indicators, President Obama and Congressional Democrats still have failed to offer any concrete plan to create jobs, reduce our debt, or grow our economy.”

Goolsbee also noted the following numbers from the jobs report. Overall payroll employment rose by 54,000 in May. Solid employment increases occurred in professional and business services (+44,000) and education and health services (+34,000). Sectors with employment declines included local government (-28,000), retail trade (-8,500), and manufacturing (-5,000). Despite the decline in May, manufacturing has added 238,000 jobs since the beginning of 2010, the best period of manufacturing job growth in over a decade.