Even though labour demand has remained resilient, it’s unclear how long that will last. With a credit crunch threatening to halt the expansion and more companies planning to let workers go, hiring and pay gains may slow substantially in the coming months.
The jobs report is one of the last major releases policymakers will see before they convene on June 13 for a two-day meeting. That morning, they’ll also see the consumer price index for May.Article contentThe jobs report is made up of two surveys: one of households, where the unemployment rate comes from, and the other of businesses, which generates the payrolls and wage figures.
The business survey, however, painted a picture of strength. Payrolls beat estimates for a 14th straight month, and wages among workers who aren’t in management roles — the vast majority of the labor force — rose 0.5 per cent, the most in six months.
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