Another beat for NFP Headline Number


US nonfarm payrolls climbed 263k in April, another beat, after a revised 189k March gain (was 196k), while February was bumped up to 56k (from 20k previously). Private payrolls were up 236k, close to the 275k from ADP. The unemployment rate dropped to 3.6% (December 1969 lows and virtual full employment) versus 3.8% previously. Average hourly earnings increased 0.2%, the same as March’s 0.2% gain (revised from 0.1%), leaving a steady 3.2% y/y. Hours worked fell to 34.4 from 34.5.  The labor force participation rate dipped again to 62.8%, after slipping to 63.0% in March from 63.2% in February. Other data show manufacturing employment up 4k, with construction up 33k, while the service sector added 202k. Government employment was up 27k. This is another very good report (especially the headlines) although some softness is evident in the details, that should support equities and to a lesser degree USD.

The Dollar headed higher following the jobs report, and the advance goods trade deficit was narrower than expected, which supported the USD as well. EURUSD dipped to 1.1135 from 1.1155, as USDJPY popped to four-session highs of 111.68 from 111.50.

Stuart Cowell

Head Market Analyst

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