“US Job Growth Beat Expectations in May, But Weak Labor Force Participation and Falling Federal Jobs Raise Doubts About the Labor Market’s Strengt.”, – WRITE: www.fxempire.com
Unemployment Rate Flat, But Participation Metrics Signal Weakness The UNEMPLYMENT RATE HELD STEADY AT 4.2%, But Underlying Participation Weaned. The Labor Force Shrank by 625,000, Pushing The Participation Rate Down to 62.4% from 62.6%. The employment-population ratio also dropped to 59.7%. The Number of Americans unemployed for less five weeks rose Sharply by 264,000 to 2.5 Million, Indicating Recent Job Losses May Be Rising.
Long-Term Unemployment Improved Slightly, with The Number of Jobsekers Out of Work for 27 weeks or more Falling by 218,000 to 1.5 Million, Now Representing 20.4% of Alled.
Wage Growth Holds Steady, Hours Worked Remain Flat AVERAGE HURLY EARNINGS ROSE 0.4% on the month to $ 36.24, Maintaining A 3.9% Annual Increase. For Production and Nonsupervisory Employees, Wages Rose to $ 31.18. AVERAGE Weekly Hours Remainned Unchanged AT 34.3, Offering No Additional Support for Income Growth Through Longer Workweeks.
Market Outlook: Cautiously Bearish on Labor Momentum While Headline Payroll Gains Topped Estimates, The Downward Revisions to Prior MONTHS (Net -95,000) and Deckling Participation Metrics Suggest Slowing Labor Mmentum. Weakness in Government and Manufacting Hiring Further Clouds the Outlook. For Traders, this report reinforces a cautiously bearish short-term view on Labor Strength, Raising the Odds of Potential Fed Policy Adjustments if Softness Persists.