economy
The May jobs report will be released Friday. Here's what to expect
The stronger-than-expected start this year for job creation could be in for a reality check.
TL;DR
- Economists surveyed by Dow Jones expect only 80,000 jobs to be added in May, down from an average of 150,000 in the prior two months.
- A "job-hugging" trend means people are staying in their current jobs, making it difficult for job seekers.
- Planned layoffs increased by 16% in May, reaching the highest total for the month since 2020.
- AI-related job cuts reached their highest single-month total since Challenger, Gray & Christmas began tracking the data.
- Initial jobless claims saw their biggest total since early February.
- Goldman Sachs forecasts 60,000 job gains, while Vanguard expects only 20,000, citing seasonal factors and a market unwind.
- The Federal Reserve is expected to keep interest rates on hold, with markets pricing in no chance of a move at the June FOMC meeting.
- A stable labor market coupled with persistent inflation could lead to a more hawkish stance from the Fed, keeping rate hikes on the table.