The May jobs report was well below expectations and revisions to the March and April numbers subtracted 75,000 jobs from previous growth estimates. Average monthly gains so far this year stand at 164,000 compared with 223,000 for all of 2018.
Today’s jobs report, combined with ongoing trade disputes and no acceleration of wage growth, increases the odds of one or two rate reductions by the Fed this year.
CBRE maintains its view that the U.S. economy is in good shape. Even with cooling job growth, the broader employment picture is strong and will support real estate market fundamentals and investment activity across property types. Barring any major escalation in trade tensions or any major economic shocks, we expect 2019 to remain on a positive track.