Today's report showed the economy adding 431K jobs in May, a figure that was dominated by temporary hiring for the US Census. While its the largest monthly gain in jobs since March of 2000 it missed expectations of a 515K change with private payrolls expected to increase 100K+.

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Out of the 431K jobs only 41K came from the private sector. That follows a 218K gain in private sector employment in April.

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  • Manufacturing employment increased by 29,000 over the month. Factory employment has risen by 126,000 over the past 5 months.
  • Temporary help services added 31,000 jobs over the month; employment in the industry has risen by 362,000 since September 2009.
  • In May, employment in construction declined by 35,000, largely offsetting gains in the industry in the prior 2 months. May's job loss was spread throughout the sector.
  • Employment in other private-sector industries, including wholesale trade, retail trade, transportation and warehousing, information, financial activities, and leisure and hospitality showed little or no change in May.
  • Government employment rose by 390,000 in May. The Federal government hired 411,000 temporary workers for Census 2010, bringing total temporary census staffing during the payroll survey reference period to 564,000.

The report with its low number of private sector jobs will be taken as a disappointment and follows yesterdays US fundamental data that missed expectations.

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The unemployment rate notched down to 9.7% from 9.9% in April.

Prior to the release the currency markets were already in heavy risk aversion territory as a result of news from the Euro-zone, and the NFP report will not change the perception of risk sentiment. US stocks look ready for some losses.