US nonfarm payrolls for May fell short of market expectations, increasing by a mere 38k versus consensus estimates for a rise of 160k. The monthly gain was the lowest since September 2010, while the previous two-months payroll increase was downwardly revised by 59k. Some of the weakness in May’s establishment report was due to the Verizon strike. Even after excluding the Verizon strike effect, payroll gains have been remarkably weak and have actually been on a downward trend since February when employment growth rose by 233k.
Disappointing US May’s employment report decreases the odds for a June hike
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