June 2, 2021
Friday’s release of May Nonfarm payrolls will be the last major employment report into the June 15-16 FOMC meeting. The Fed has recently pointed to a sluggish labor market recovery as a reason to defer conversations about tapering asset purchases. Consensus is looking for May payrolls to increase by +656,500 vs. April’s disappointing +266,000 add, which was largely blamed on a shortage of workers. The issue resurfaced after yesterday’s better-than-expected May manufacturing ISM revealed a month-over-month decline in the employment sub-component. The US Chamber of Commerce also released a report on the topic yesterday after more than 90% of state and local chambers of commerce said worker shortages were holding back their economies.