US Nonfarm Payrolls increase 339,000 in May vs. 190,000 expected
https://www.fxstreet.com/news/us-nonfarm-payrolls-report-analyzing-may-nfp-release-202306020600
The US Bureau of Labor Statistics (BLS) reported on Friday that Nonfarm Payrolls rose 339,000 in May. This reading surpassed the market expectation of 190,000 by a wide margin. April's reading of 253,000 also got revised higher to 294,000.
The Unemployment Rate climbed to 3.7% from 3.4% in the same period, while the Labor Force Participation rate remained unchanged at 62.6%. Finally, annual wage inflation, as measured by the changed in Average Hourly Earnings, edged lower to 4.3% from 4.4%.
"The number of persons employed part-time for economic reasons, at 3.7 million, changed little in May," the BLS further noted in the press release. "These individuals, who would have preferred full-time employment, were working part-time because their hours had been reduced or they were unable to find full-time jobs."
Market reaction
With the immediate reaction, the US Dollar Index erased its daily losses and turned positive on the day above 103.50. The benchmark 10-year US Treasury bond yield turned north and rebounded to 3.65%. According to the CME Group FedWatch Tool, however, markets are still pricing in a nearly 70% probability of the US Federal Reserve leaving its policy rate unchanged in June.
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