The unemployment rate in May was little changed from the previous month, edging down from 4.7% to 4.6%, according to the U.S. Bureau of Labor Statistics. Nonfarm employment was up slightly, to 135.1 million, with education and health services and professional and business services among the notable industries adding jobs.

Education and health services added a total of 41,000 jobs during the month, with employment in the industry growing by 408,000 over the past 12 months. Healthcare represented nearly 70% of that growth and in May added 19,000 jobs.

As modest employment improvements occurred over the month, the overall macro-economic outlook for the U.S. took a turn for the worse. Already concerned about inflation that has been fueled in large part by increases in energy costs, the Federal Reserve now notes that the economy is also slowing. The ugly mix of inflation and slow growth has economists concerned. Over the first 5 months of 2006, prices rose by 5.2%, much higher than the 3.4% increase that occurred over the entire year of 2005.

Combined with that are signs that the economy’s growth, while still positive, is decelerating. From the mid-April through the first week in June, deceleration in economic growth was clearly discernible.

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