The disappointing jobs number shocked the markets this morning. As the net change for non-farm payrolls came in with only 69k more than the previous month, expectations of 150k were dramatically overstated.

Revisions also brought bad news. The March number was revised down by 11k and April revised down by 38k, bringing the net total for the month of only 20k.

Overall, this report brought disappointing news, but as a reminder, this is a lagging indicator and decline of the last 2 months seems to be justified by this kind of report. Let’s think about what this tells us about the June report…