May Non-farm Payroll (NFP) by the Numbers

It’s another strong U.S employment report

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%.

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