US Payrolls – Keeping the Flames Alive
Hiring in the US continued at a solid pace:
- 431k jobs added versus expectations for 490k
- Previous two payrolls revised higher by 95k job
- Unemployment rate 3.6% (3.7% expected)
- Annual wage growth 5.6% (5.5% expected)
- Participation rate moves up to 62.4%
The pace of job growth is unsustainable and we expect to see it slow towards 200k in the coming months as the pool of available labour declines and as growth moderates.
Today’s data is strong enough to keep the Fed on pace to raise rates 50bps at the next meeting.