United States: Job gains beat expectations in April
Total non-farm payrolls grew by 253,000 in April, beating market expectations. However, this was at least partly due to March’s job gains being revised down substantially, creating a more favorable base of comparison. Gains in professional and business services, healthcare, leisure and hospitality, and social assistance underpinned the reading. Meanwhile, the unemployment rate ticked down to 3.4% in April from 3.5% in March.
The still-robust labor market bodes well for private spending in Q2. Our analysts see the labor market loosening slightly in the coming quarters on the back of tighter monetary policy, although the unemployment rate is forecast to remain low by historical standards.