The May jobs report looked strong on the surface. Underneath, it had the market's favorite problem: concentration.
Call it the labor market's "Magnificent Three": The leisure and hospitality, local government, and healthcare sectors drove nearly all of last month's 172,000 payroll gain.
Friday's payroll report smashed expectations, with the unemployment rate holding at 4.3% and prior months revised higher. But the sector breakdown mattered just as much as the headline. Leisure and hospitality added 70,000 jobs, local government added 55,000, and healthcare added 35,200.
Everything else added only 11,800 jobs.
That makes the jobs market look a lot like the stock market. The headline number is holding up, but the leadership is narrow.
Call it the labor market's "Magnificent Three": The leisure and hospitality, local government, and healthcare sectors drove nearly all of last month's 172,000 payroll gain.
Friday's payroll report smashed expectations, with the unemployment rate holding at 4.3% and prior months revised higher. But the sector breakdown mattered just as much as the headline. Leisure and hospitality added 70,000 jobs, local government added 55,000, and healthcare added 35,200.
Everything else added only 11,800 jobs.
That makes the jobs market look a lot like the stock market. The headline number is holding up, but the leadership is narrow.
1 day ago
