US Payrolls seen grinding lower – TDS

According to strategists at TD Securities, next week’s release of Non-farm Payrolls should come in on the soft side around 145K.

Key Quotes

“The impact from the ongoing Verizon workers’ strike should bias headline nonfarm payrolls lower, with the pace of jobs growth slowing to 145K in May and risks tilting to the downside”.

“The unemployment rate should remain unchanged at 5.0% as a further influx into the labor force offsets the gains in household employment”.

“Wages should post a modest 0.2% m/m gain and the annual pace of average hourly earnings growth should remain unchanged at 2.5% y/y”.