Monthly Employment Update
The May jobs report came in much stronger than expected, with nonfarm payrolls increasing 172,000 versus the consensus estimate of 85,000. Leisure and hospitality, local government, and healthcare led the gains. Revisions further emphasized a strengthening labor market, with March and April numbers both revised upwards to 214,000 and 179,000 respectively, making total added gains of 93,000. The unemployment rate held steady at 4.3% while the broader underemployment rate fell slightly to 8.1%, keeping in line with estimates.
On the wage side, average hourly earnings rose 3.4% year-over-year, slightly below last month’s 3.6%. That trajectory is constructive for keeping wage inflation contained. Given the strength of the last three employment reports, the FOMC will likely be more focused on the inflationary side of their dual mandate, and interest rate
Last Five Months Nonfarm Payrolls
Source: BLS.gov
Nonfarm Payrolls
Source: FRED - U.S. Bureau of Labor Statistics
Disclaimer
- The information in the Employment update has been prepared solely for informative purposes and is not a solicitation, or an offer, to buy, sell or hold any security or a recommendation of the services supplied by any money management organization. It does not purport to be a complete description of the securities, markets or developments referred to in the report. We believe the sources to be reliable, however, the accuracy and completeness of the information is not guaranteed. Data displayed on this site or printed in such reports may be provided by third party providers. This document is intended only for the addressee and may not be reproduced or redistributed. If the reader is not the intended recipient, you are notified that any disclosure, distribution or copying is prohibited. Additional information is available upon request. Please contact your Financial Consultant with any questions.