Job Growth Blooms Again in May

Action Economics expects the employment report for the month to show a nonfarm payrolls gain of 135,000, vs. April's tepid growth of 88,000

After a weaker than expected showing in April, Action Economics expects the May employment report, scheduled for release June 1, to reveal a rebound in job growth following the weather-restrained April figures. We expect non-farm payrolls to rise 135,000 in May (vs. economists' median forecast of 140,000) from a tepid gain of 88,000 in the prior month. This would extend the weather-led zig-zag pattern of 2007 job growth, around the widely expected pattern of gradual payroll growth moderation. Overall, the report is expected to show continued labor market tightness.

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