NFP Preview: Unemployment rate should jump further in May, likely to 20% – Wells Fargo
|On Friday, the May official employment report will be released. According to analysts at Wells Fargo, the employment data should continue to show ongoing distress in the labour market.
Key Quotes:
“While not anticipated to be as quite as dramatic as April’s record-setting performance, the May employment report should still show severe ongoing distress in the labor market. Nonfarm employment is poised to slice another sizeable amount off payrolls in May. Our call of -8M jobs is spot on the consensus estimate.”
“Job losses should remain broad based, though the predominate share should come from the services sector."
“The unemployment rate should jump further in May, our call is 20%. Job losses will continue to be tilted toward workers and industries with lower compensation. As such, we expect average hourly earnings to be boosted further by a compositional effect, 1.5% m/m, though not by as much as was seen in April.”
“As states continue to ease restrictions and firms re-open–accounting for the new social distancing environment–we expect the labor market to improve in the coming months. That said, it will still likely take a number of years for the labor market to fully recover from its pandemic-induced meltdown.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.