May non-farm employment data disappointed market participants. Employment grew only by 38 000 people, while the figures for the previous two months were revised downward. Employment in the telecommunications industry fell by 37,200 people, partly due to the Verizon strike. But the figures were weak even without the one-time impact of Verizon strike. The data showed that employment in the sector of production of goods decreased in the past month, while the private sector recorded the smallest increase in nearly four years. The unemployment rate fell to a cyclical low and amounted to 4.7 percent, caused by a sharp decline in labor force participation. In light of the unexpectedly weak report for May, the June data will be very important to assess the situation on the labor market.

According to the average forecast in June, employment increased by 180K.