May Non-farm Payroll (NFP) by the Numbers

It’s another strong U.S employment report

  • US Labor May Nonfarm Payrolls +223K; Consensus +190K
  • US May Unemployment Rate 3.8%; Consensus 3.9%
  • US May Average Hourly Earnings +0.3%, or +$0.08 to $26.92; Over Year +2.7%
  • US May Private Sector Payrolls +218K and Government Payrolls +5K
  • US May Average Workweek Unchanged at 34.5 Hours
  • US May Labor-Force Participation Rate 62.7%
  • US Apr Payrolls Revised to +159K; Mar Revised to +155K
  • US Apr Unemployment Unrevised at 3.9%
  • U.S unemployment rate fell to an 18-year low last month and U.S employers steadily added jobs.

    Non-farm payrolls rose a seasonally adjusted +223k in May and the unemployment rate ticked down to +3.8%.

    Wages in May improved modestly, growing +2.7% y/y. Revised figures show employers added +159k jobs in April and +155k in March, a net upward revision of +15k.

    Digging deeper

    Average hourly earnings for all private-sector workers increased +8c last month to $26.92. The +2.7% annual again is small compared to pre-recession readings.

    Note: The last time unemployment was near current levels wages rose +4.3% from a year earlier.

    Net result, the low unemployment rate and modest wage increases should keep Fed in line to hike rates at a meeting later this month. Consumer inflation has strengthened in recent months to reach the Fed’s +2% annual target.

    The USD has extended its gains against some G7 currency pairs (€1.1670, C$1.2971, ¥109.60, £1.3317).

    U.S 10-year yield trades up at 2.91%.

    This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell