In the upcoming jobs report for May, investors and economists anticipate further insights into the current state of the labor market. The Federal Reserve is closely monitoring these reports as they influence decisions regarding inflation and interest rates.
According to various sources, including Dow Jones, Bloomberg, and Citigroup economist Andrew Hollenhorst, May's nonfarm payrolls report is expected to show an addition of around 185,000 jobs. The unemployment rate is predicted to remain at 3.9%. However, there are differing opinions on the implications of these numbers.
Citigroup economist Andrew Hollenhorst suggests that a weaker jobs report could indicate a continued slowdown in the economy, while an unexpected strengthening might reinforce no urgency to cut interest rates. Citi expects 140,000 job additions and a 4% unemployment rate.
Goldman Sachs anticipates below-consensus payroll gains of 160,000 due to seasonal adjustments. However, they also expect an extra pay week in the month to offset some of these distortions.
Average hourly earnings are expected to increase by 0.3% month over month and remain at a yearly growth rate of 3.9%. This wage data will be closely watched by the Federal Reserve as they consider their stance on inflation and interest rates.
The May jobs report is also significant because it could mark the 28th consecutive month of sub-4% unemployment if the jobless rate comes in as expected. This would be a notable achievement for the US economy.
