US nonfarm payrolls likely rose 170,000 in May – Danske Bank

The research team at Danske Bank suggests that today, the US jobs report for May is due, one of the last important data releases ahead of the Fed's meeting later this month and forecasts nonfarm payrolls rose 170,000 in May but note the ADP report released yesterday showed a stronger increase of 253,000.

Key Quotes

“The Markit PMI employment index suggests slower growth of around 100,000. We estimate the unemployment rate increased from 4.4% to 4.5%, as labour force growth was weak at the end of 2016 and in the beginning of 2017 and we think we could see some reversion. We estimate average hourly earnings rose +0.2% m/m, implying an unchanged annual growth rate of 2.5% y/y.”