DATA DIVERGENCES

The establishment survey reported May net new jobs of 272,000, way more than expected, and wages up 0.4% M-o-M and 4.1% Y-o-Y, both slightly hot. However, the household survey showed the labor force participation rate falling to 62.5%, the unemployment rate rising to 4%, and the number of jobs declining by 408,000. During turning points, the household survey tends to be superior. This report clarifies nothing and freezes the Fed.