Relax. Jobs Are Growing, But Inflation Isn't

The employment report is supposed to be the Labor Dept.'s monthly snapshot of the U.S. labor market. The May installment, though, looked like a double exposure: Payrolls rose less than expected, a sign that economic growth is moderating to a less inflationary pace. But the jobless rate dropped sharply to a level that suggests wage and price pressures are just around the bend. Which image is correct?

To continue reading this article you must be a Bloomberg Professional Service Subscriber.