Once again, the Employment Situation report pointed to strong headline growth and subdued inflationary pressure stemming from rising wages. Nonfarm payrolls increased by 263,000 while average hourly earnings were up just 0.2%, leaving them up 3.2% yr/yr, unchanged from what was seen in the March report.
April nonfarm payrolls increased by 263,000 (Briefing.com consensus 200,000). Over the past three months, job gains have averaged 169,000 per month. March nonfarm payrolls revised to 189,000 from 196,000. February nonfarm payrolls revised to 56,000 from 33,000.
April private sector payrolls increased by 236,000 (Briefing.com consensus 180,000). March private sector payrolls revised to 179,000 from 182,000. February private sector payrolls revised to 46,000 from 28,000.
April unemployment rate was 3.6% (Briefing.com consensus 3.8%), down from 3.8% in March. Persons unemployed for 27 weeks or more accounted for 21.1% of the unemployed, unchanged from March. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was unchanged at 7.3%.
April average hourly earnings were up 0.2% (Briefing.com consensus 0.3%) after increasing a revised 0.2% (from 0.1%) in March. Over the last 12 months, average hourly earnings have risen 3.2%, unchanged from the March reading.
The average workweek in April was 34.4 hours (Briefing.com consensus 34.5) versus 34.5 hours in March. Manufacturing workweek was unchanged at 40.7 hours while factory overtime remained at 3.4 hours.
The labor force participation rate was 62.8% in April versus 63.0% in March.
The April report should support the Fed's case for staying on its current policy path.
|Aggregate Hours Index||-0.1%||0.5%||-0.3%||0.2%||0.5%|
|Avg Hourly Earnings||0.2%||0.2%||0.4%||0.1%||0.4%|
|Civilian Unemp. Rate||3.6%||3.8%||3.8%||4.0%||3.9%|
|Civilian Labor Force||-490K||-224K||-45K||-11K||419K|