Capital Economics: Non-farm payrolls expected to slow in May

Nonfarm payrolls are expected to slow in May, with nonfarm payrolls adding a net 200,000 jobs, down from 253,000 in April, Capital Economics analyst Andrew Hunter said in a note.

“While the unemployment rate remains extremely low, the report should also provide further evidence that wage growth is still moderating.” Hunter expects the unemployment rate to hold steady at a 50-year low of 3.4 percent and average hourly earnings to rise 0.1 percent. He believes there will be evidence that the labor market is relaxing and that the U.S. can achieve more sustainable wage growth rates without a significant rise in unemployment.