Total nonfarm payrolls increased by 175,000 in May according to the Bureau of Labor Statistics. The number was in-line with estimates. The unemployment rate rose from 7.5% to 7.6%. Below the headlines, participation rate at 63.4%, an average work week of 34.5 hours, and average hourly earnings of $23.89 were all withing basis points of April’s report.
“It probably solved nothing in terms of the Fed,” says Jim Paulsen, chief investment strategist at Wells Capital Management, in the attached video. “It certainly calms you down that we’re not going to have another Spring swoon this year like we’ve had the last three years. All in all that’s probably a good thing for the stock market.”
Early trading on Friday supports the vaguely bullish nature of the data. As discussed yesterday there was a fairly thin window for this data. The unemployment rate ticked higher which took some pressure off the Fed, but the economy is going absolutely no where.
You can see the full “Breakout” segment below: