The U.S. releases May unemployment rate and May seasonally adjusted non-farm payrolls data.
The data showed that the non-farm payrolls in the United States were 390,000 after seasonal adjustment in May, the smallest increase since April 2021.
The U.S. unemployment rate was 3.6% in May, compared to expectations of 3.50% and the previous value of 3.60%.
The U.S. Bureau of Labor Statistics said employment in leisure and hospitality, professional and business services, and transportation and warehousing increased significantly, while retail employment declined.
After the data was released, U.S. stock index futures rose slightly in a short-term, Nasdaq futures fell to 0.8%, S&P 500 futures fell 0.36%, and Dow futures fell 0.2%. The spot gold price bottomed out and rose by $5 in a short-term, recovering the decline after non-farm payrolls, and is now at $1,865.18 an ounce.
What do the institutions think?
Bloomberg Economics economist Andrew Hesby: The May data showed the smallest job growth since April 2021, while average hourly earnings growth slowed. When combined with a stable or better labor supply, the mix would move a step closer to the Fed's goal of cooling labor demand without economic-damaging interest rate hikes. U.S. employers may be entering a more cautious phase in hiring and compensation decisions. Cooling labor demand will leave a narrow path for a soft landing, even if the Fed will formally raise rates at its upcoming meeting
Analyst Olivia Rockeman: The U.S. added more jobs than expected in May, indicating that businesses remain confident in demand and the economic outlook. The U.S. Labor Department reported that nonfarm payrolls rose by 390,000 last month, after a revised increase of 436,000 in April. Unemployment held at 3.6%, labor force participation also held steady
Analyst Lucia Mutikani: U.S. employment growth exceeded expectations in May, and the unemployment rate was steady at 3.6%, indicating a tightening labor market that may allow the Federal Reserve to step on the brakes and cool demand. The report also showed solid wage growth last month, painting a picture of continued economic expansion, albeit at a modest pace. The Fed is trying to keep inflation in check by suppressing labor demand without pushing up unemployment. The Federal Reserve's hawkish monetary policy stance and the consequent tightening of financial conditions has investors worried about a recession next year.
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