Job growth slows – May jobs report

This morning, the Department of Labor reported that the U.S. economy added 138,000 jobs in May, below expectations of 185,000. The unemployment rate dropped to 4.3%, which is the lowest since May 2001, but was primarily caused by a fall in the labor force participation rate. In addition to the weak May numbers, March and April payroll numbers were significantly revised downward. The bright spot in the report came from the underemployment measures.

Here are my thoughts on the report and what it likely means for a June rate hike.

 

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