Lovely Labor

The economy created a whopping 428,000 jobs in April despite a very tight labor market, suggesting good growth. However, the labor force participation rate eased slightly, probably to be soon reversed, and more puzzling, wage growth rose just 0.3% M-o-M and is rising at an annualized rate of just 3.7%, half the rate of inflation since 1/1/22, suggesting weakening wage and price pressures. A Goldilocks report, if sustainable!