MAY NFP KEY POINTS:
- U.S. employers add 390,000 workers in May, versus expectations of a gain of 325,000 jobs
- The unemployment rate holds at 3.6%, slightly above forecasts
- Average hourly earnings advances 0.3% on a monthly basis, bringing the annual figure to 5.2% from 5.5% in April
Most Read: S&P 500, Nasdaq 100: Dimon Warns of Hurricane as Banks Buckle Up[1]
MARKET REACTION TO NFP DATA
Updated at 8:55 am Eastern Time
Immediately after the NFP[2] report crossed the wires, U.S. yields shot up across the Treasury curve, boosting the U.S. dollar[3]. Strong jobs numbers suggest that the labor market, already at full-employment, continues to tighten, a situation that can push the Federal Reserve to deploy more aggressive actions to cool the economy in its efforts to restore price stability.
DXY 5 MINUTE CHART
Source: TradingView [4]
EMPLOYMENT REPORT KEY DETAILS
8:35 am Eastern Time
The U.S. economy added 390,000 jobs in May after an upwardly revised 436,000 gain in April, blowing past consensus expectations that called for an increase of 325,000 positions, a sign that the labor market continues to tighten and that the Federal Reserve's measures to cool the economy are not yet bearing fruit.
Despite solid payroll gains, the unemployment rate held at 3.6%, but the culprit was an increase in the participation rate, which moved up to 62.3% from 62.2%, as more people returned to the labor force lured by better-paying opportunities and perhaps by the soaring cost of living.
Meanwhile, the establishment survey revealed that average hourly earnings, a closely watched inflation metric, advanced 0.3% in seasonally adjusted terms, bringing the annual figure to 5.2% from 5.5% in April, a sign that wage pressures may be moderating. As background information,
