The economy added 559,000 new jobs in May which missed the Street’s estimate for a gain of 671,000. Meanwhile, the unemployment rate slid to 5.8%, below the Street’s estimate for 5.9% and below April’s reading of 6.1%.
The report also showed we are still 7.6 million jobs below the peak in February 2020. The big areas of the economy that enjoyed the most gains were leisure/hospitality, in public and private education, and in health care and social assistance in May.
It is important to note that there are still many workers that remain at home due to government subsidies, supply constraints, higher inflation, and capacity production concerns.
Since the jobs number missed estimates in both April and May’s it likely took pressure off the Federal Reserve to taper its bond buying program. Remember, the Fed has a dual mandate: help employment and keep inflation near 2%.
If the jobs data came in stronger than expected than that would have put pressure on the Fed to end its emergency measures sooner than initially expected. For now, the Fed still has a long runway left to keep printing money and that tends to be bullish for the stocks and other “asset” prices.
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June 04, 2021 at 07:49PM
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Why The Jobs Report Means More Easy Money From The Federal Reserve - Forbes
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