KEY POINTS
  • Nonfarm payrolls increased 559,000 in May, below the 671,000 estimate.
  • The unemployment rate fell to 5.8%, slightly better than expected and below April’s 6.1%.
  • Hospitality again led job creation, with 292,000 new positions.
  • Markets reacted positively to the report, with investors expecting the Fed to keep a loose monetary policy.

Job creation disappointed again in May, with nonfarm payrolls up what normally would be considered a solid 559,000 but still short of lofty expectations, the Labor Department reported Friday.

Payrolls were expected to increase by 671,000, according to economists surveyed by Dow Jones.