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Eshe Nelson
The 10-year Treasury yield is now down a little, to 1.6 percent.
Patricia Cohen
To some degree, friction is normal in reopening an economy as mammoth at the United States. It’s not like switching on a light.
Ben Casselman
The official unemployment rate fell to 5.8 percent in May. Adjusting for misclassification and people leaving the labor force (roughly what the Fed has recently been discussing lately), unemployment was 8.7 percent, down just a tick from April.
Patricia Cohen
There is a big puzzle in the labor market: Nearly seven million people who are out of work say they want a job and there are roughly eight million jobs open. Why such a mismatch?
Eshe Nelson
Mike Bell at JPMorgan Asset Management says the jobs report is a “goldilocks scenario of a labor market recovery that is not too cold to raise concerns about the economy, but not too hot to prompt fears about faster than expected monetary policy tightening.” That’s good for stocks.
Ben Casselman
Hourly pay in leisure and hospitality is now running above its pre-Covid trend. I wouldn’t make too much of one month of data, but if that continues, it would be notable.
Eshe Nelson
This slowdown in employment gains will make it easier for the Fed to keep up its stimulus and other central banks, too. I’m thinking about the European Central Bank, which meets Thursday. A debate about tapering is happening there, too.
Ben Casselman
The number of workers reporting that they are on temporary layoff fell below two million for the first time since the pandemic began. Permanent layoffs are also falling, but more slowly.
Deborah Solomon
The 559,000 jobs added is unlikely to alter the Fed’s patient stance given they were looking for much more robust job growth before starting to taper or nudging rates higher. This report doesn’t move the needle much.
Eshe Nelson
There is not a big reaction in the markets to the May jobs report. Stock futures are up a little, the dollar is down 0.3 percent and 10-year Treasury note yields are completely flat at 1.625 percent.
Ben Casselman
Remote work is continuing to fall as more offices reopen; 16.6 percent of workers were remote in May, down from peak of 35.4 percent. And 30 percent of professional workers were remote, down from a high of 57.4 percent.
Sydney Ember
Perhaps unsurprisingly, a large portion of the May pickup in jobs was in leisure and hospitality, which was up 292,000 for the month. As restrictions lifted further and Americans — vaccinated and eager to go out again — returned to restaurants and bars.
Neil Irwin
The three-month average job creation is 541,000. That would be great in a normal recovery, but it is far from the kind of explosive surge many (me included!) have been expecting. At this rate, we’re 14 months away from filling the hole.
Ben Casselman
Job growth picked up in May, but was still weaker than in March. The big picture: we’re still down 7.6 million jobs from before the pandemic.
Jeanna Smialek
The Fed was hoping for a “string” of million-ish jobs numbers. They are having to settle for something a lot more lackluster.
Neil Irwin
Put it all together, and this is an economy that is healing, but not with the kind of robust, hot vaccine summer boom that I had expected before the April jobs report.
Neil Irwin
The labor force participation rate actually edged down. That is consistent with the story that people are holding back, not re-entering the workforce en masse despite the economy re-opening.
Jeanna Smialek
Headline job gains were super close to consensus, labor force participation was little changed, and the number of people who are working part time for economic reasons was stable. Whatever you thought about the job market yesterday is unlikely to change too much on this report.
Ben Casselman
The unemployment rate fell for “good” reasons in that employment was up, unemployment was down. But labor force was basically flat (actually down slightly), which will add fuel to “labor shortage” concerns.
Neil Irwin
The revision to April jobs growth is only up 278,000. Nothing special — I suspected we might see a much bigger upward revision.
Ben Casselman
U.S. employers added 559,000 jobs in May. The unemployment rate fell to 5.8%.
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