Consensus estimate +130K Estimate range +75K to +190KApril was +228K Private consensus +120K versus +167K priorUnemployment rate consensus estimate 4.2%Prior unrounded unemployment rate 4.1872% versus 4.1519% priorPrior participation rate 62.6%Prior underemployment U6 7.8% Avg hourly earnings y/y exp +3.7% versus +3.8% priorAvg hourly earnings m/m exp +0.3% versus +0.2% priorAvg weekly hours exp 34.3 versus 34.3 prior
Numbers released so far this month:
ADP report +37K versus +62K prior (lowest in two years)ISM services employment 50.7 vs 49.0 priorISM manufacturing employment 46.8 vs 46.5 priorChallenger job cuts 93.8K vs 105.4K prior Philly employment +16.5 vs +0.2 priorEmpire employment -5.1 vs -2.6 prior Initial jobless claims survey week 226K vs 216K prior
I noticed that HFE — which is a firm I really respect — is at the high end of forecasts at +181K. They often spot seasonal quirks and that might be the case here.
In general, there is some modest seasonal strength in the report with it coming above estimates 54% of the time, though the downside misses have been big when they’ve missed. In terms of the unemployment rate, 44% have been lower while 40% have been higher with the remainder matching the estimate.
Overall, I don’t think this is a particularly important report given that the Fed is in ‘wait and see’ mode.
This article was written by Adam Button at www.forexlive.com.