US job creation disappoints in April, adding to the Fed’s case for patience

In breve

The April employment report poured some cold water on hopes of a strong acceleration in the recovery. The US economy created 266k jobs, much below the 900k+ consensus estimates.

Highlights:

  • Employment growth was well below expectations (266k versus 900k+). The increase in reopening sectors was offset by losses in temporary help and delivery/transportation.
  • However, the increase in the participation rate and the upbeat message from surveys show that the recovery is intact. Surveys point also to the risk of bottlenecks, but wage data do not show overheating yet.
  • The data are consistent with the Fed’s call for patience and should temper expectations of an early key rate lift-off.
  • We developed a visual tool gauging the path towards full and inclusive employment, which monitors the evolution of the main labour market aggregates and the breakdown by workers’ categories. It shows that employment growth is outpacing the recover in labour market participation, but this is not leading to wage pressures.

Download the full publication below

US job creation disappoints in April, adding to the Fed’s case for patience
PDF

Also interesting

Picture

© Generali Investments, tutti i diritti riservati. Questo sito web è fornito da Generali Investments ed è considerato come una comunicazione di marketing e una promozione finanziaria riferita ai prodotti e servizi delle società elencate di seguito, appartenenti al Gruppo Generali: Generali Investments Partners S.p.A. Società di gestione del risparmio, Generali Insurance Asset Management S.p.A. Società di gestione del risparmio, Generali Investments Luxembourg S.A. e Generali Investments Holding S.p.A. (nel prosieguo, congiuntamente indicate come Generali Investments). Inoltre, il sito può contenere comunicazioni di marketing e promozioni finanziarie di prodotti e servizi di società appartenenti alla piattaforma multi-boutique coordinata da Generali Investments Partners S.p.A. Società di gestione del risparmio, nello specifico di Generali Global Infrastructure, Sycomore Asset Management, Aperture Investors LLC., Plenisfer Investments SGR, Lumyna Investments e Generali Real Estate S.p.A. Società di Gestione del Risparmio