Don't blame healthcare for May's poor jobs report.
The industry added 46,000 jobs last month, more than the disappointing 38,000 jobs created by the overall economy, as several sectors suffered large job losses, according to last week's report from the U.S. Bureau of Labor Statistics.
In May, the healthcare sector added 24,000 jobs in ambulatory services, 17,000 at hospitals and 5,000 at nursing-care facilities. Healthcare has been a jobs driver throughout 2016.
There's another silver lining for healthcare. The paltry jobs report reduces the likelihood that the Federal Reserve will raise bank borrowing rates this month above the current historically low 0.25% to 0.5%. Hospitals and other healthcare companies rely heavily on debt financing for expansion. The low interest rates make it less expensive for them to fund their capital needs.
The national unemployment rate fell, despite the jobs performance, to 4.7% in May from 5% in April. That's largely because more Americans dropped out of the workforce.
