There is more than meets the eye with the red-hot May employment report.
"I am somewhat concerned," Dunkin' Brands Group (DNKN) CEO Nigel Travis told TheStreet when asked for his thoughts on Friday's must-watch data release. "I am concerned this may hurt the economic recovery -- I think something has to be done to improve the supply [of workers]."
Added Travis, "We have trouble attracting people, and the franchisees are very frustrated with it but I think they are doing everything they can."
To be sure, the labor market looks so tight right now that finding qualified workers may be even tougher in the months ahead. Further, service companies such as Dunkin' and Walmart (WMT) could be forced to hike wages to find, and keep, talent. That suggests inflation is lurking.
The U.S. economy added 223,000 jobs in May, trouncing economist's expectations of 190,000 new jobs. The unemployment rate dropped to 3.8% in May, an 18-year low, from 3.9% a month earlier.
"The implications for the Federal Reserve are clear. The labor market continues to improve. The lower unemployment rate and the changing composition of job gains may allow for faster gains in average wages," says HSBC chief U.S. economist Kevin Logan.
How to Play Today's Risky Markets. Click here and register for free to watch what top experts from Bank of America, Fisher Investments, Invesco and Wells Fargo say smart investors should do now.