Ton up!
US nonfarm payrolls increased by a thumping +304,000 in January 2019 despite the government shutdown, although there was a substantial downwards revision to the preceding month.
The 3-month average gain for hiring is still very solid at +241,000, and this was the 100th consecutive month of gains - more than doubling the previous record of unbroken gains at 48.
Well batted.
Well batted.
Part-time employment may have offset any impacts from the shutdown in the month.
The unemployment rate edged higher to 4 per cent, so now sits a little above the cyclical low of 3.7 per cent (again, perhaps an impact of the shutdown).
Earnings growth was still +3.2 per cent, and to a second decimal place was the strongest gain of the expansion to date.
This was the 74th consecutive month where wages growth outpaced inflation in the US.
The wrap
Overall, still pretty good numbers, and despite a possible slowing of the US economy US job openings have remained extremely strong.
For whatever reason, the suddenly cautious rhetoric from the Fed this week was very much dovish, suggesting that the tightening cycle could be over, in spite of the strong labour force results.
There will be no hikes until inflation accelerates, at the least.
This could be a plus for Australia if it plays out, given that funding costs have been rising here, though it also makes you wonder exactly what the Fed is fearful of.
