Key takeaways
- The US jobs report from the Labor Department came in hotter than expected, but unemployment also rose more than anticipated
- ADP jobs report yesterday showed a big increase in April for private payrolls at 278,000 – far above expert predictions, and JOLTS survey showed layoffs have lost steam
- All signs point to the Fed having more work to do on the inflation front
The non-farm payrolls report for May has arrived, bringing with it news of a far stronger amount of jobs added to the economy than anticipated. The result has flummoxed experts, who had predicted a cooling of the jobs market. It wasn’t all great news – wage growth slowed and unemployment rose more than expected – but it’s another tricky decision for the Fed ahead of their June meeting.
As for investors, the stock market was pleasantly surprised to see the jobs market booming and has risen accordingly. Let’s get into the facts and figures to try and determine what the Fed’s next step could look like.
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