In the News

US April payrolls rise more than expected, wage rises cool

NEW YORK, May 6 (Reuters) - U.S. job growth increased more than expected in April, underscoring the economy's strong fundamentals despite a contraction in gross domestic product in the first quarter.

Nonfarm payrolls rose by 428,000 jobs last month, the Labor Department said on Friday. Data for March was revised down to 428,000 jobs added from 431,000. Economists polled by Reuters had forecast payrolls rising by 391,000 jobs. The unemployment rate was unchanged at 3.6%.

The jobs-workers gap widened to an all-time high of 3.4% of the labor force from 3.1% in February. Average hourly earnings increased 0.3% after advancing 0.5% in March. read more


STOCKS: S&P e-mini futures briefly turned positive then down 0.55%, pointing to a weak open on Wall Street

FOREX: The dollar index turned 0.19% firmer



“Perhaps today is a day for settling down and seeing less action after two very turbulent days that ultimately leave us at where we started for the week dollar-wise. We know the labor market is tight, this only further confirms it. Nevertheless, wages are still nothing stellar while inflation is the main focus for all outlooks. Expect FX to continue flowing accordingly to the needs of the war and handling its toll.”

“It shows that the job market is still solid. Average hourly earnings grew at a more modest pace, which is telling us that wage inflation might be easing, which certainly is a good thing for the Fed and inflation.”

“Over the last few months, we have seen the month-over-month pace of average hourly earnings starting to decelerate somewhat. That’s a positive indicator that this surge in hourly wages that we experienced may finally be easing.”

“Importantly, at this time, given the volatility in the market, any sign of easing inflation pressures should be well received. So, although this is an early signal, we need to see to more months for it to be confirmed. But it’s still a welcome signal.”

Compiled by the global Finance & Markets Breaking News team
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