The data comes as recent data have begun to show signs of a slowing job market. On Wednesday, ADP data showed the private sector added 37,000 jobs in May, the smallest monthly gain in more than two years. On Thursday, weekly initial jobless claims hit the highest level since October 2024. Meanwhile, continuing claims hovered near their highest level in nearly four years.
“The latest jobless claims data suggest easing labor market conditions, with the rise in initial claims suggesting layoffs may be increasing, while the rise in continuing claims confirms that unemployed workers are having a hard time finding new jobs,” Nancy Vanden Houten, chief economist at Oxford Economics, wrote in a note to clients.
Some economists expect the cooling trend in other labor market data to be reflected in Friday’s report.
“The May jobs report is likely to show that labor market dynamics slowed last month as rising policy uncertainty, tariffs and reduced immigration flows weighed on job growth,” Lyda Boussour, senior economist at EY, wrote in a preview note.
As concerns grow about a further slowdown in the labor market, Stuart Kaiser, head of U.S. equity trading strategy at Citi, told clients in a weekly research note that data in line with consensus expectations is “a mild positive for stocks” given the risks that a weak reading clearly poses.
