The employment market in the U.S. has made a solid recovery over the 2014 calendar year with a mostly positive start to 2015. Most are looking for the trend to continue with another month of 200,000+ jobs. The result of the payrolls data will only be considered positive if there is significant real wage growth; above the threshold level of 2% annual growth. The U.S. economy appears to be edging closer to full employment and with a concrete rise in average hourly wages, a move from the Federal Reserve may come sooner rather than later. The impact of the data highlights investment opportunities in U.S. dollar currency pairs.
Investors Notes: Non-Farm Payroll, 12:30 GMT.
- Payrolls are expected to rise by a further 226,000 jobs in May, up slightly from April’s figure of 223,000.
- Average hourly wages are projected to rise 0.2% for the month, with hourly earnings expected to push above the 2% threshold when compared with 2014.
- Non-Manufacturing payroll jobs are calculated to have risen by approximately 215,000 in May.
- According to Trim Tabs estimates, 273,000 jobs were added during the month of May according to real time tax data.
- Banc De Binary analysts predict that employment figures will be positive.