(Reuters) – U.S. job growth slowed sharply in May and wages rose less than expected, suggesting the loss of momentum in economic activity was spreading to the labor market, which could increase calls for the Federal Reserve to cut interest rates this year.
* U.S. May nonfarm payrolls rose 75,000 vs forecast for 185,000 and April’s downwardly revised 224,000 (prev +263,000)
* U.S. May labor force participation rate 62.8 pct vs April’s unchanged 62.8 pct
* U.S. May jobless rate 3.6 pct, as expected, vs April’s unchanged 3.6 pct
* U.S. May average hourly earnings all private workers rose 0.2 pct, below consensus for +0.3 pct
* May year-on-year earnings +3.1 pct, below consensus for +3.2 pct and April’s +3.2 pct
* U.S. May U-6 underemployment rate 7.1 pct vs April 7.3 pct
STOCKS: The S&P 500 was up 0.8% in morning trade
BONDS: Treasury yields fall after the report. 2- year at 1.8030% and 10-year at 2.0671%
FOREX: The dollar index was down…
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