The U.S. non-farm payroll data for May shows a generally neutral to strong performance. Although the non-farm payrolls added 139,000 jobs, slightly below the previous value, the wage data was significantly stronger than expected, with the year-on-year average hourly wage reaching 3.9% and the month-on-month rate rising to 0.4%, reflecting persistent wage pressure and strong inflation stickiness.
The unemployment rate remained at 4.2%, and the labor force participation rate slightly declined to 62.4%. The number of jobs in manufacturing decreased by 8,000, indicating concerns about the employment structure.
Overall, the data signals 'strong wages, structural pressure,' which may lead the Federal Reserve to remain cautious on the interest rate cut path.