In this morning’s data, the economy added 390,000 jobs in May, more than expected. The Transportation & Warehousing industry was strong, while the Retail Trade and Motor Vehicle and Parts industries were relatively weak. The Unemployment Rate held steady at 3.6% and the Labor Force Participation Rate at 62.3% is slightly higher than the previous month. Average Hourly Earnings increased 5.2% on an annual basis as expected, and Average Weekly Hours were 34.6 which is the same as the previous month.
Overall, another positive headline number, albeit slowing slightly from previous months, coupled with an unemployment rate that remains near pre-pandemic lows. Labor force participation rate is slightly higher as average hourly earnings shifts slightly lower but remains above their 50-year average, again highlighting the difficulties in finding workers for some companies. While slightly slowing, labor market remains tight allowing the Federal Reserve to follow through with interest rate increases and balance sheet reductions in the coming months to help deal with inflationary pressures.
In all, U.S. 10-year treasury yield is ticks higher following the report and equity futures are lower as we head into the market open.
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