Here's what the May jobs report won't tell you

Investors will be closely paying attention to the May jobs report for signs of strength in the labor market. David Stryzewski, CEO, Sound Planning Group, joined TheStreet to discuss the hidden trends reshaping the job landscape.

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Full Video Transcript Below:

DAVID STRYZEWSKI: Well, this jobs report that's coming out here on Friday, it's kind of an interesting one. It's kind of a mess, though. There's not really a whole lot going on. As far as the headline data goes, I'm a little bit critical. Why, because when we see jobs numbers overstated by 818,000 in the previous year, you go, wait a minute. You had a few million jobs that came out, but they were overstated by how many. So here's the point. Small businesses are hiring. Some small businesses are not hiring. I think this is a strategic time for layoffs. If you are a tech company and talent was hard to come by probably overhired. Why, because you had tons of cash. You were looking for the right people and you didn't want to have a downfall of them. Now we've got AI that's taking some of those jobs. Now, we might have strategic moments here where people may be able to downsize, and their company are more right sized for the future. Given some of the differences in innovation are how some of these roles, might be automated. And, I think that we need to just also recognize that with better technology and more efficiencies, it will bring lower costs. 

But it might cost us some jobs here along the way. And so people need to think about how can they be irreplaceable in those businesses, what education might they need to be getting right now to make them indispensable in the future. What jobs might there be in the future for actual people like plumbers and electricians and nurses. But there might be less primary care doctors out there. And oh, by the way, I could probably be my doctor and get 100% on the test that it takes to become a doctor because it's a speed reader and a perfect referencer. 

And so I think that we just need to make ourselves aware for some changes that could come. But ultimately these jobs numbers that are coming out are going to tell us that there are some trends developing, and I think that we should be paying attention to it. Oh, one last one on that with the jobs that are developing here, is that if the Tax Cuts and Jobs Act 2.0 goes through and you're doing part time work or you're willing to do overtime, which is trying to incentivize the families that are ultimately here and endeavoring to make things happen. I think it's important for us to understand that those families could be positioned really well by that new tax cuts and Jobs Act 2.0 and how it could affect their bottom line for making those decisions to work those extra hours.