Key Takeaways from the May US Jobs Report

Thanks for joining us on this June 7, 2019, for our coverage of the jobs report.

Here are our key takeaways from the report:

  • The fewer-than-expected 75,000 jobs created in May adds to investors’ concerns about slowing economic growth. The softer jobs data, coupled with heightened global trade tensions could spur the Federal Reserve toward easing monetary policy. Bets on lower   interest rates drove stocks higher again June 7, 2019.
  • Although the unemployment rate held steady at its lowest level in nearly 50 years, a miss on wage growth and downward revisions to March and April are also stoking fears that the U.S. economy is slowing more quickly than expected in the second quarter.
  • Some analysts cited a slowdown in the services sector as a worrisome trend that could bolster bets on rate cuts. Sectors that were little changed for hiring last month included mining, construction and manufacturing, another negative for those monitoring signs that trade tensions are hurting the economy.
  • Today’s report increases investors’ focus on inflation, industrial production and retail sales figures next week. Industrial production and retail sales fell unexpectedly in April, and more downbeat data points could lead to further downgrades of economic growth estimates. 
  • The fewer-than-expected 75000 jobs created in May adds to investors’ concerns about slowing economic growth. The softer jobs data, coupled with heightened global trade tensions could spur the Federal Reserve toward easing monetary policy. Bets on lower interest rates drove stocks higher again Friday.
  • Although the unemployment rate held steady at its lowest level in nearly 50 years, a miss on wage growth and downward revisions to March and April are also stoking fears that the U.S. economy is slowing more quickly than expected in the second quarter.
  • Some analysts cited a slowdown in the services sector as a worrisome trend that could bolster bets on rate cuts. Sectors that were little changed for hiring last month included mining, construction and manufacturing, another negative for those monitoring signs that trade tensions are hurting the economy.
  • Today’s report increases investors’ focus on inflation, industrial production and retail sales figures next week. Industrial production and retail sales fell unexpectedly in April, and more downbeat data points could lead to further downgrades of economic growth estimates. 

www.wsj.com