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(NECN) - Everyone was watching for the May unemployment and jobs report Friday.
According to the report, 175,000 new jobs were created. Unemployment, however, ticked up to 7.6 percent.
Nariman Behravesh, chief economist for IHS Global Insight, analyzed the situation.
"It's a decent number, and it's certainly better than expected, but it is important to say that all the growth was in the services sector," said Behravesh. "That's good, services account for 80 percent of employment in the U.S. But manufacturing is struggling and the federal government is shedding jobs to the tune of about 15,000 jobs a month."
Behravesh noted that the sequester has a lot to do with those government jobs.
"I think what's really good is it looks like the service sectors are shrugging off the sequester," he said.
See the attached video for the complete interview.