Today's US Non-Farm Payroll report showed that economy added 916K jobs in March, the most since August 2020, following an upwardly revised 468K in February. Today's reading came well above analysts estimates of 647K. The largest increase in employment was observed in leisure and hospitality (280K), public and private education (190K), and construction (110K). Employment also increased in professional and business services (66K), manufacturing (53K) and transportation and warehousing (48K). However, economy is still about 8.4 million jobs short from the peak in February of 2020 and there is still a long way to go before the US labour market fully recovers from the pandemic shock.The unemployment rate fell to 6.0% last month from 6.2% in February. Average hourly earnings came in lower-than-expected as lower paid wages came back to the workforce.
US job growth at 7-month high. Source: XTB, Macrobond
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Create account Try a demo Download mobile app Download mobile appUS stock indexes futures rose sharply following the report. Treasury yields also moved higher and this upward impulse may continue after Easter. Investors need to take into account that despite the fact that US stocks remain attractive at the moment, this may change quickly if Treasury yields start to surge again. Also, due today's positive data more investors are now expecting one rate hike by the end of next year.
The market is now pricing in one rate hike by the end of 2022. Source: Bloomberg via ZeroHedge
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