Group 1: Employment Data Overview - In June, non-farm employment increased by 147,000, exceeding expectations of 106,000, marking the fourth consecutive month of surpassing market forecasts[2] - The unemployment rate fell from 4.2% to 4.1%, below the expected 4.3%, while the labor participation rate decreased from 62.4% to 62.3%[2] - Hourly wage growth was lower than expected at 0.2% month-on-month, compared to the forecast of 0.3% and a previous value of 0.4%[2] Group 2: Market Reactions and Trends - Market expectations for interest rate cuts have significantly cooled, with the probability of a July rate cut dropping from 25.3% to 4.7% and September from 91% to 70.7%[2] - Following the non-farm report, U.S. stock markets and the dollar index rose, while long-term U.S. Treasury yields increased[2] - The Dow Jones Industrial Average rose by 0.77%, the Nasdaq by 1.02%, and the S&P 500 by 0.83%[2] Group 3: Employment Market Analysis - The employment market conditions index, based on 15 employment-related indicators, recorded 0.389, slightly better than the previous months but weaker than the end of last year[4] - Employment growth breadth remains at a cycle low since 2015, with the monthly employment diffusion index dropping from 51.8% to 49.6%[4] - Government sectors contributed 50% of the new jobs, with significant growth in education and healthcare services, while private sector job growth was below expectations[4]

Group 1: US Labor Market and Economic Indicators - The US non-farm payroll report for May showed resilience in the labor market, with 139,000 new jobs added, exceeding the expected 126,000 [2] - The unemployment rate remained at 4.2%, aligning with expectations, but there was notable internal structural divergence, with the U1 unemployment rate decreasing and the U4 rate increasing [2] - Job growth in the service sector was strong, with an increase of 145,000 jobs, particularly in leisure and hospitality, as well as transportation and warehousing, while the goods-producing sector saw a decline of 13,000 jobs [2] Group 2: Wage Growth and Inflation Concerns - Private sector hourly wages increased by 0.4% month-over-month, surpassing the expected 0.3%, with a year-over-year growth rate steady at 3.9% [2] - The broad increase in wages across various sectors has intensified inflation concerns, providing the Federal Reserve with more reasons to maintain a cautious stance [2] Group 3: China's Foreign Trade Performance - China's foreign trade maintained a steady growth trajectory, with total goods trade value reaching 17.94 trillion yuan, a year-on-year increase of 2.5% [3] - Exports amounted to 10.67 trillion yuan, growing by 7.2%, while imports fell by 3.8% to 7.27 trillion yuan [3] - The central region of China led the growth in foreign trade, significantly outpacing the national average, supported by the "Central China Rising" strategy [3] Group 4: US-China Economic Negotiations - Following internal conflicts within the US administration, there is potential for a shift in the US's hardline stance during US-China economic negotiations, with initial meetings expected to yield positive outcomes [4] - US Treasury Secretary and Commerce Secretary reported productive discussions, indicating a possible easing of external pressures on China's economy [4]

Employment Data Summary - In May, the U.S. added 139,000 non-farm jobs, slightly exceeding the expectation of 130,000[2] - Job growth was concentrated in three sectors: education and healthcare services (+87,000), leisure and hospitality (+48,000), and finance (+13,000)[2] - The unemployment rate remained steady at 4.2%, with a slight increase in the labor force participation rate from 62.6% to 62.4%[4] Wage Growth Insights - Hourly wage growth was 0.4% month-on-month, surpassing the expected 0.3%, and year-on-year growth was 3.9%, up from a revised 3.8%[3] - The average weekly hours worked remained at 34.3 hours, indicating stable labor income growth[3] - Wage growth is crucial for protecting consumer purchasing power, especially for low- and middle-income groups, amid inflation concerns[5] Market Reactions and Economic Outlook - Market expectations for interest rate cuts have cooled, with the probability of a September rate cut dropping from 61.3% to 51.8%[3] - The anticipated number of rate cuts for the year decreased from 2.1 to 1.8, and the year-end policy rate expectation rose from 3.795% to 3.886%[3] - Following the report, U.S. stock indices rose, with the Dow Jones up 1.05% and the Nasdaq up 1.2%, indicating a rebound in risk appetite[3]

Employment Data Summary - In May, the U.S. added 139,000 non-farm jobs, slightly exceeding the expectation of 130,000[2] - Job growth was concentrated in three sectors: education and healthcare services (+87,000), leisure and hospitality (+48,000), and finance (+13,000) while other sectors experienced job losses[2][25] - The unemployment rate remained steady at 4.2%, with a slight increase in the labor force participation rate dropping from 62.6% to 62.4%[4][29] Wage Growth Insights - Hourly wage growth was 0.4% month-over-month, surpassing the expected 0.3%, and year-over-year growth was 3.9%, up from a revised 3.8%[3][34] - The increase in wages is crucial for protecting the purchasing power of low- and middle-income consumers amid inflation concerns[5][19] Market Reactions - Market expectations for interest rate cuts have cooled, with the probability of a September rate cut dropping from 61.3% to 51.8%[3][39] - Following the employment report, U.S. stock indices rose, with the Dow Jones up 1.05%, Nasdaq up 1.2%, and S&P 500 up 1.03%[3][39] Employment Trends - The employment diffusion index fell to 50% for the month, indicating a decline in the breadth of job growth across sectors[4][24] - The total number of jobs added in the previous two months was revised down by 95,000, indicating a trend of slowing job growth[2][21]

Core Viewpoint - The article discusses the May non-farm payroll data, highlighting that while job additions slightly exceeded expectations, the overall employment market shows signs of slowing down, with a notable focus on wage growth as a positive aspect [1]. Group 1: Employment Data Overview - In May, non-farm employment increased by 139,000, surpassing the expected 130,000, with job growth concentrated in three sectors: education and health services (+87,000), leisure and hospitality (+48,000), and financial activities (+13,000) [2][16]. - The unemployment rate remained steady at 4.2%, but this stability was achieved at the cost of a declining labor force participation rate, which fell from 62.6% to 62.4% [5][22]. - The employment growth breadth has decreased, with the employment diffusion index dropping to 50%, indicating that job growth is becoming less widespread across various sectors [4][16]. Group 2: Wage Growth Insights - Wage growth in May was a highlight, with hourly earnings increasing by 0.4% month-over-month, exceeding the expected 0.3%, and a year-over-year increase of 3.9%, also above the anticipated 3.7% [6][31]. - The article emphasizes that the wage growth is crucial for protecting the purchasing power of consumers, particularly for low- and middle-income groups, amidst rising inflation concerns [6][12]. Group 3: Market Reactions - Following the non-farm report, market expectations for interest rate cuts have cooled, with the probability of a September rate cut dropping from 61.3% to 51.8% [3][35]. - The stock market reacted positively, with major indices such as the Dow Jones and Nasdaq rising, indicating a rebound in risk appetite among investors [3][35].