In short, nothing fun overall.

The report shows the initial numbers higher than expected, let’s look at them:

Nonfarm payrolls increased by 272,000 in May (vs. 190,000 expected). April’s figure was revised down to 165,000.

Despite this, the unemployment rate rose to 4%, and the labor force participation rate dropped. The report in general suggests mixed signals about the economy, and shows both robust job growth and underlying weaknesses.

Not to mention last: wages also grew more than expected, potentially impacting the Federal Reserve’s decision on interest rates. As the result – the stock market reacted negatively to the report, which doesn’t sound good. Again.

And there are key points of the article:

Job Growth: Nonfarm payrolls increased by 272,000 in May vs. 190,000 expected. April’s figure was revised down to 165,000. Unemployment Rate: Rose to 4%, the first time above this level since January 2022. Labor force participation rate decreased to 62.5%. Employment Composition: Household employment fell by 408,000. Full-time workers declined by 625,000. Part-time positions increased by 286,000. Sector-specific Gains: Health care (+68,000), Government (+43,000), Leisure and Hospitality (+42,000). Professional, Scientific, and Technical Services (+32,000), Social Assistance (+15,000), Retail (+13,000). Wages: Average hourly earnings rose 0.4% month-over-month and 4.1% year-over-year (above the expected 0.3% and 3.9%). Market Reaction: Stock futures declined, Treasury yields surged. Reduced likelihood of a Federal Reserve rate cut in July and lowered expectations for September and December cuts. Federal Reserve Impact: Policymakers likely to maintain current interest rates longer due to strong job and wage growth. Current benchmark federal funds rate is 5.25%-5.5%.