BLS DAILY REPORT, FRIDAY, JUNE 6, 1997: RELEASED TODAY: Nonfarm payroll employment rose in May, and unemployment was about unchanged after falling in April. The number of payroll jobs rose by 138,000 in May, following an increase of 323,000 in April (as revised). The May gain was below the average monthly increase so far this year of 229,000. The nation's jobless rate, 4.8 percent in May, has fallen by half a percentage point since the end of last year. In accordance with standard practice, the payroll survey figures were revised to reflect annual benchmark adjustments based on full universe counts of employment. The impact on employment in the March 1996 reference month was a very small upward adjustment of 57,000. Today's jobless report will be a key to Federal Reserve thinking on interest rates (Wall Street Journal, "Washington Wire", page A1). A further unemployment drop or May payroll growth above 225,000 would raise pressure on the Fed to boost rates for the second time this year at the July 1-2 meeting. The number of workers filing first-time claims for state unemployment insurance benefits rose by 19,000 to a seasonally-adjusted level of 337,000 during the week ending May 31, the Labor Department's Employment and Training Administration reports (Daily Labor Report, page D-1; The Washington Post, page G8; The Wall Street Journal, pages A1 and A16). The jump in first-time claims occurred despite a holiday-shortened workweek, and exceeded the 320,000 increase that Wall Street economists predicted.
