NEW YORK ( TheStreet) -- TheStreet's Debra Borchardt is with Nicholas Colas of ConvergEx Group, to discuss Friday's nonfarm payrolls report.
The government reported that 175,000 jobs were added to the U.S. workforce in May, slightly more than economists' expectations for 169,000. The unemployment rate unexpectedly rose to 7.6%, from 7.5% in April.
The higher unemployment rate could be an indication that more people are searching for a job, since the reading does not take into account people who are unemployed and not actively seeking work.
Although the nonfarm payrolls number did beat expectations, it wasn't a very good number overall, according to Colas, who said it would have been much better if it had been more than 200,000.Concerns are starting to build that the economy is seeing very little improvement after trillions of dollars in stimulus injections from the Federal Reserve. Colas also added that the jobs experiencing the highest growth are also the ones that pay the lowest. Although that's better than nothing, it's not good for the economy, as these jobs rarely have benefits and pay too little to cover anything outside of basic expenses. One bright spot is the auto sector, which pays well and is firing on all cylinders. These jobs, which pay $40 an hour or more, are climbing after automakers have seen a huge surge in sales in 2013. Borchardt noted that Ford (F) has seen robust sales in its F-Series pickup trucks, something that has already begun adding additional shifts to compensate for the increased demand. She also pointed out that it is a rather expensive vehicle and that if consumers are buying it, it must show that they have confidence in their work and plan to keep getting paid well. "You have some folks doing well, other folks, not so much," Colas concluded. -- Written by Bret Kenwell in Petoskey, Mich. . Follow @traderboy23