Labor Market Report: The Lull Isn't Forecast To Last

(9min)

Summary

  • The unemployment rate stayed unchanged for the third consecutive month in May, but the lull isn't expected to last.
  • Forecasters predict a weaker labor market by the last quarter of the year, though higher inflation can still restrict the Fed from slashing rates.
  • A softer jobs market, and overall economy ahead, also indicates potential weakness in equities, encouraging sticking to defensives for now.
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Businessman is studying a crowd of people with a magnifying glass. Hr search candidates for work, staff recruiting. Society, demographic. Market and customers research. Citizens electorate. Sociology

Andrii Yalanskyi

The labor market report for May essentially reflected unchanged conditions from the month before. But make no mistake, this doesn't imply smooth sailing ahead. Especially not, as the report can no longer be seen in isolation as a measure of how

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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