US headline nonfarm payrolls likely lower - TDS

Research Team at TDS,  suggests that the impact from the ongoing Verizon workers ’ strike should bias US headline nonfarm payrolls lower, with the pace of jobs growth slowing to 145K in May and risks tilting to the downside.

Key Quotes

“The unemployment rate should remain unchanged at 5.0% as a further influx into the labor force offsets the gains in household employment. Wages should post a modest 0.2% m/m gain and the annual pace of average hourly earnings growth should remain unchanged at 2.5% y/y.”