Job growth seen cooling in May but wage increases were still hot – By Patti Domm (CNBC) / June 2, 2022
- Economists expect 328,000 jobs were added in May, down 100,000 from April and likely the start of a new, slower pace of job creation.
- Even so, economists say the labor market is strong and they expect wages to rise by 0.4% from April.
- “I don’t think there’s a swath of people that is out of the labor force and on the cusp of being brought back in. There’s roughly two job openings for every unemployed person,” said one economist.
The pace of job growth is expected to have slowed in May, but economists say the labor market remains strong, even as parts of the economy have weakened.
Economists forecast that employers added 328,000 new jobs, less than the 428,000 added in April, according to Dow Jones. The unemployment rate is forecast to decline to 3.5% from 3.6%.
Average hourly wages are expected to have risen by 0.4%, up from April’s 0.3% increase. Year-over-year, wage growth is expected to fall slightly to 5.2%, from 5.4% in April.
“I suspect it’s the average hourly earnings number that could get people excited,” said Michael Schumacher, head of macro strategy at Wells Fargo. “The Fed has been pretty consistent as well – that it’s inflation, inflation, inflation. If it’s 0.5%, you probably get some reaction. If it’s 0.6%, it’s pronounced.”
