Risk appetite is encouraging amid a ‘moderate’ slowdown in employment
(New York = Yonhap Infomax) Reporter Ha-ram Lim = Non-agricultural employment in the United States slowed slightly last month, as Wall Street had hoped.
US non-farm employment trends Source: Yonhap Infomax
The US Department of Labor announced on the 3rd (local time) that non-farm employment increased by 175,000 in April.
This is lower than the increase of 240,000 expected by experts compiled by the Wall Street Journal (WSJ).
April is usually a strong seasonal month for employment. Despite seasonal factors, employment in April fell below expectations.
Meanwhile, the non-agricultural employment figure for last March was revised up by 12,000 from 303,000 to 315,000. In February, the non-agricultural employment figure was reduced by 34,000 from the previously published figure of 270,000 to 236,000.
The US unemployment rate in April was 3.9%.
This is the previous month’s figure and exceeds market expectations by 3.8%.
The unemployment rate in the United States has been fluctuating in the range of 3.7% to 3.9% since last August.
The economic activity participation rate in April was 62.7%, the same as the previous month.
The average hourly wage increased $0.07 (0.2%) to $34.75. This is lower than the WSJ estimate of a 0.3% increase.
Hourly wages rose on average by 3.9% compared to the same period last year. It was below Wall Street’s expectation of a 4.0% increase.
The weekly working hours were 34.3 hours, down 0.1 hour from the previous month.
By sector, jobs increased significantly in healthcare (up 56,000 people), social security (up 31,000 people), transport and inventory (up 22,000 people), and retail trade (up 20,000 people).
The number of jobs increased slightly in the construction (up 9,000 people) and government (up 8,000 people) sectors.
Jobs in information and financial activities, professional and business services, leisure and hospitality, manufacturing, wholesale trade, and mining remained largely unchanged.
The April nonfarm payrolls data was interpreted as good news for financial markets that had been hoping to see a moderate slowdown in the labor market.
This is because if the labor market is too hot, it will be difficult for the US Federal Reserve to cut interest rates. At the same time, we managed to avoid a rapid economic slowdown that would cause concern.
After the employment report was released, Dow Jones Industrial Average futures rose about 500 points. Nasdaq index futures and Standard & Poor’s (S&P) 500 index futures also jumped about 1.5% and 1%, respectively.
US bond yields also plunged. Immediately after the publication of the employment indicator, the US 10-year bond interest rate plunged more than 13 basis points from the previous day, falling to 4.4490%. The 2-year bond interest rate fell 10bp to 4.77%, and the 30-year bond interest rate fell 6bp to 4.66%.
The dollar also weakened. The US dollar index fell to the 104.7 level.
hrlim@yna.co.kr
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This article was published on the Infomax financial information terminal at 22:22, two hours earlier.
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