May non-farm payroll
The US May jobs report indicated weak improvement in the US labor market. May non-farm payroll employment in the United States (SPY) (SPXL) posted an improvement of only 138,000 jobs for the month, as compared to 211,000 jobs in April—far below the market expectation of 185,000 jobs added.
Key highlights of the jobs report
Job growth occurred in the healthcare, professional and business services, and mining sectors. Healthcare (XLV) added 24,000 jobs in May, as compared to 37,000 jobs in April. Professional and business services added 38,000 jobs, while the mining (XLB) sector added 7,000 jobs.
Impact on the economy
The weaker growth in the US labor market in May has now become an increasing area of concern in the overall US economy. The US Manufacturing PMI has also been showing a gradual decline in performance, and the mounting delays among President Donald Trump’s policies are creating more worries in investors’ minds.
Performance of various indexes in May
The major indexes of the US, including the S&P 500 Index (SPY), the Dow Jones Industrial Average (DIA), and the Nasdaq Composite Index (COMP-INDEX), showed flat performances in May. These indexes rose 1%, 0.45%, and 1.7%, respectively, in May 2017.
For more on this subject, you may also be interested in reading Market Realist’s series What Theresa May’s Failed Gamble May Mean for Investors.