Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 8 April 2017

US unemployment rate drops to 4.5pc


The US Bureau of Labor Statistics (BLS) reported a much slower month in March, with only 98,000 jobs added and a further 38,000 jobs wiped off the previously reported figures for January and February. 

Retail jobs the apparent culprit.

Clearly a much weaker result, although looking through the noise average payroll gains for the first three months of the year were a solid enough 178,000. 

With well over 10 million jobs added under Obama, we are now greeting a new Presidency, for better or worse.

Average hourly earnings increased by 5 cents in March following an increase of 7 cents in January to be 68 cents higher over the year at $26.14. 

The annual growth in average hourly earnings slowed to 2.7 per cent. 

Despite the poor monthly figures the unemployment rate dropped to just 4.5 per cent. 

While this may look odd given a flat participation rate and weaker monthly job gains, in the context of the strong run of employment growth since June 2016 it may not be such a surprise. 

Australia's labour force figures for March aren't due out until Thursday, but it increasingly looks to be the case that unconventional policies have worked a treat elsewhere while leaving laggard Australia in the dirt!

Small wonder our bond yields are falling...

Overall, the Fed will probably still hike rates by June, but the rise in rates may be gradual if softer numbers persist.