U.S. adds 248,000 more jobs

WASHINGTON — U.S. employers added almost a quarter million workers in May, extending a nine-month hiring spree and accommodating enough new jobseekers to hold the unemployment rate steady at 5.6 percent.

Payrolls swelled by almost 1 million in the last three months alone, the Labor Department said Friday. Employment figures for March and April were revised up to reflect the addition of 353,000 and 346,000 jobs respectively.

Tens of thousands of jobseekers are renewing their searches in an improving labor market, so the overall, seasonally adjusted civilian unemployment rate did not improve from April’s 5.6 percent figure.

Nevertheless, the snapshot of America’s employment situation in May met the expectations of most private analysts and fueled anticipation of an increase in interest rates when the Federal Reserve meets at the end of this month. The Fed’s main interest rate has been at a 46-year low of 1 percent, but analysts expect that to end with the jobs market steadily gaining steam.

On Wall Street, the report gave investors confidence that continued job growth is sustainable.

Hiring last month was widespread, with businesses adding an overall 248,000 new jobs across the economy. Industries that posted the biggest gains included construction, health care, professional and business services and hotels and restaurants.

“What is really key is that every major sector had improvements,” said John Silvia, chief economist for Wachovia Securities. “That suggests these gains are sustainable.”

The struggling manufacturing sector also is reawakening, adding 32,000 new jobs last month. Based on revised figures, it was the fourth straight month of payroll increases after almost three years of continuous losses.

Friday’s report was good news for President Bush, who has been counting on continued employment growth to boost his re-election prospects. The economy was expected to be a major drag on his campaign.