The US economy added 390K payrolls in May, the least since April 2021 but above market forecasts of 325K. The latest reading left the economy 822K jobs or 0.5% below its pre-pandemic level.
- Notable job gains occurred in leisure and hospitality (84K), namely food services and drinking places (46K) and accommodation (21K); professional and business services (75K); and in transportation and warehousing (47K), namely warehousing and storage (18K), truck transportation (13K), and air transportation (6K). Manufacturing employment continued to rise (18K), namely in fabricated metal products (7K), wood products (4K), and electronic instruments (3K). In contrast, employment in retail trade declined by 61K, mainly due to job losses in general merchandise stores (-33K).
The US economy added 390k jobs which was a drop from last month's upward revised 436K. Source: Bloomberg via ZeroHedge
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Create account Try a demo Download mobile app Download mobile app- Unemployment rate remained steady at the 1969-low of 3.6%,
- Average hourly earnings rose by 0.3% MoM, slightly below market expectations of a 0.4% gain. Over the past 12 months, wages increased by 5.2%, following a 5.5% rise in April and in line with analysts estimates. It was the smallest increase in average hourly earnings in three months.
Average hourly earnings remained steady at 0.3% MoM, but they continued to fall on a YoY basis. Source: Bloomberg via ZeroHedge
Of course today's report is unlikely to change the outlook on Fed's policy in the upcoming meeting. It seems that only easing price pressures coupled with massive drop in employment could delay Fed's hiking process. Recently we had some signals that this scenario may materialize - wages growth is slowing, while many big companies like Tesla or Microsoft are expecting tougher economic conditions and consequently job cuts. Yesterday's ADP report showed that this process already started among small companies, which shed 91K jobs. If other firms join this trend in the upcoming months, next NFP readings may turn out to be disappointing.
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