US: April jobs report indicates solid growth in employment – Nomura

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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