No news is generally good news in jobs report

The economy wasn't exactly smoking in May, but the addition of 175,000 jobs - a bit higher than what many analysts had expected - was just enough to ward off concerns that growth was slowing down. Even the slight uptick in the jobless rate to 7.6 percent was considered positive news because it suggests that more folks are entering the labor market. Investors seem relieved - the Dow is up 170 points in early trading. From the WSJ:

No news is good news--to a point. A recent run of bad economic data--a downturn in manufacturing, a pullback in consumer spending--sparked fears that the job market, too, would show signs of weakness in May. In that context, a same-old-same-old jobs report comes as a relief, much as last month's report eased fears of another "spring swoon." But in the broader context, the recent pace of hiring remains lackluster, enough to bring down unemployment over time, but only slowly, and not enough to fill quickly the 2.4 million job hole that remains from the recession.

From the NYT:

Despite signs of optimism from consumers, other indicators of the health of the job market have been mixed. Average weekly hours and average hourly earnings, for example, have shown little improvement in recent months, according to the Labor Department. Job gains in May were concentrated in service sectors like professional and business services, retail, and food services and drinking places. That last category has added 337,000 jobs over the past year. The federal government, on the other hand, lost 14,000 jobs in May, presumably a result of the across-the-board spending cuts, known as the sequester, implemented by Congress in March.