#Nonfarm Payrolls Update#

📊 General Results – Strong Start or Hidden Weakness?
• 147,000 new jobs were added; the economist's expectation was 110,000.
• The unemployment rate decreased to 4.1% in May, down from 4.2%.
• The working hours in the private sector decreased by 0.2 hours, and the average weekly working time dropped to 34.2 hours.
• Hourly wage growth has slowed to 3.7% annually, down from 3.9% in May.

🔍 Sector Distribution and In-Depth Data
• Public sector hiring stood out: There was an increase of +73,000 in the government sector, while only +74,000 in the private sector.
• While there has been an increase, particularly in the education and health sectors, weak performance in manufacturing and professional services has drawn attention.
• The labor force participation rate is close to a two-and-a-half-year low at 62.3%; particularly, foreign worker participation has decreased.

Impact on Fed Policy
• Strong numbers pushed Fed rate cuts further out than July; markets are now pointing to September.
• The dollar and Treasury bond yields have risen; the DXY index and the US 10-year Treasury yield have drawn attention.
• However, the private sector is weak, labor force participation is declining, and real wage growth is limited; these factors support the likelihood of economic slowdown.

🎯 Market Reaction
• Exchanges rose: S&P500, Nasdaq, and Dow reached record levels.
• Bond yield rates, DXY and the dollar strengthened; Fed interest rate cut expectations declined.
• The FX market is also active: The US Dollar has generally strengthened, and there has been volatility in the EUR/USD and GBP/USD pairs.

📌 Result
Employment increase;
Although it may seem strong, it is publicly funded; the private sector is weak.

Labor force participation;
The economy is falling short of its full potential.

Fees;
Slowing down - inflationary pressure is decreasing.

Fed policy;
The interest rate cut has likely been postponed from July to September.

Market reaction;
Stocks and the dollar strengthened; bond yields increased.