Media can talk about monthly unemployment numbers but the one number they should pay attention is the paycheck. People are getting jobs but very few are getting pay raises – PB/TK
U.S. Jobs Weakness May Be Temporary, But Loss of Momentum Isn’t – By Sho Chandra and Patricia Laya / June
There are plenty of explanations for the weaker-than-expected May jobs report, but the big picture is clear: The U.S. labor market has lost some of its mojo.
Monthly payroll gains are averaging 162,000 this year, a step down from the 2016 pace of 187,000, following a below-forecast rise last month and downward revisions to March and April in Labor Department figures released Friday. While the unemployment rate fell to a 16-year low of 4.3 percent, the employment-to-population ratio also declined. Wages failed to accelerate as expected, with annual growth remaining below highs for the previous expansion.
The data come with a variety of caveats, including seasonal-adjustment issues unique to May, and economists still expect the Federal Reserve to forge ahead with an interest-rate hike later this month. Yet the numbers are an indication of both broader trends that analysts are anticipating — such as businesses having difficulty finding skilled and experienced workers as the U.S. nears full employment — and ongoing puzzles such as the lack of larger paychecks for workers.
“Clearly we’re seeing some slowdown in job growth,” said Stuart Hoffman, senior economic adviser at PNC Financial Services Group Inc. in Pittsburgh. “I’d call the job numbers soft, not weak. Some of that may be a lack of employees but some of it is also slower demand.” In addition, “what’s still missing is any sign of faster, bigger pay hikes.”
Continue to Bloomberg.com article: https://www.bloomberg.com/news/articles/2017-06-02/u-s-jobs-weakness-may-be-temporary-but-loss-of-momentum-isn-t
