May 2018 non-farm payrolls
Non-farm payroll (or NFP) data show the number of jobs added or lost each month in the United States. On June 1, the U.S. Bureau of Labor Statistics released its employment summary for May. The non-farm payroll figure was 223,000, which is much higher than the market’s expectation of 189,000.
Upward revision in April data
On the day of the May data release, April’s NFP change of 164,000 was revised slightly downward to 159,000, reflecting a minor weakness.
On a non-seasonally adjusted basis, non-farm payroll data for May was 149,309, which is higher than 148,366 in the previous month. Healthcare, construction, and retail trade were among the top sectors where employment continued to grow positively.
June NFP data estimates
According to analysts’ consensus estimates, NFP could fall in June on a month-to-month basis. Estimates suggest a positive change of 182,000, which is lower than 223,000 in May.
Among all the major macroeconomic indicators for the auto industry, NFP data act as a key indicator. Positive employment growth in the country and high wages could boost consumers’ purchasing power, which could encourage them to buy expensive consumer goods such as vehicles.
Last month, the US jobs market continued to show significant improvement. Continued improvement in June could keep auto investors’ hopes alive about the future of US auto sales.
In the next part of this series, we’ll look at preliminary consumer sentiments data for June.