US: April jobs report indicates solid growth in employment – Nomura
|In view of the research team at Nomura, US April jobs report exceeded expectations and showed strong gains (+211k total nonfarm, +194k private) and diminishing slack.
Key Quotes
“Although month-to-month changes this year have been blurred by the effects of the second-warmest winter on record, today’s numbers bolster the view that the 2017 job market continues to improve notably:
- Job growth has averaged 185k per month, and the household survey shows even stronger growth.
- Labor market slack is shrinking rapidly.
- The unemployment rate has fallen from 4.8% in January to 4.4% in April, the lowest reading since May 2007.
- The underemployment rate (U6) fell from 9.4% in January to 8.6% in April, the lowest reading since November 2007.
- The labor force participation rate has remained nearly constant, hovering between 62.9% and 63.0%, continuing to defy the negative effects of the aging population.
- Despite diminishing slack, average hourly earnings, though increasing 2.5% yo-y, are showing no signs of acceleration.”
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