The monthly jobs report is the Rodney Dangerfield of economic statistics. It gets little respect yet has a big and important audience.
In good times, employment data is derided as “a lagging indicator,” as if just because it captures what the job market was, it is to be dismissed, especially by the stock market. In bad times, the job information either confirms the difficult times or is rejected as out of date.
May’s jobs report is likely to be discounted even if it shows Americans continue finding work and US companies continue creating new positions. The stock market is in a foul mood. It is convinced the Federal Reserve’s fight against inflation will not just slow down the economy but trigger a recession.
