“US Private Payrolls Rose by Just 37K in May, Signaling Labor Market Weakness. Job Growth Lags, But Wage Gaves Hold Steady. What Could this Mean for Fed Policy?”, – WRITE: www.fxempire.com
Wage Growth Steady: Pay for Job-Canars Remains Elevated Despite Weaker Hiring, Wage Growth Remainned Stable. Pay for Job-Stayers Rose 4.5% Year-Over-Year, While Job-Caners Saw A Stronger 7% Increase. The Financial Activities Sector Led With A 5.2% Median Pay Increase for Job-Stayers. Pay Growth Was Notable Weaker in Small Firms (2.6% for Those with Under 20 Employees), While Medium and Large Firms posted Stronger Wage Gains, Closer to 4.8%.
FIRM SIZE MATTERS: MID-SIZED BUSINESSES DRIVE HIRING MID-Sized Companies (50–249 Employees) Led Employment Gains 51,000 New Jobs, While Small Businesses Cut 13,000 Positions and Large Firms Trimmed Payrols. The Strong Showing by Mid-Sized Firms Suggests Some Resilience in The Middle Market, Even As Hiring Pressure Intensifies in Other Areas.
Market Outlook: Bearish Bias on Labor Strenguth The Sharp Drop in Job Creation and Regional Softness Point to A Weakening Labor Market. While Steady Wage Growth Offers Some Support to Consumer Demand, The Overall Tone of the Report Is Bearish From A Labor Strenguth Perspective. Traders Should Monitor UpComing Fed Commentary Closely, As Softaining Employment May Alter Rate Expectations Heading Into The Summer.
More Information in Our Economic Calendar.