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U.S. unemployment rate hits 10-year low as job creation beats consensus

Published 05/05/2017, 08:32 AM
Updated 05/05/2017, 08:32 AM
© Reuters.  U.S. creates 211,000 jobs in April vs. 185,000 forecast

© Reuters. U.S. creates 211,000 jobs in April vs. 185,000 forecast

Investing.com – The U.S monthly employment report showed that the economy created more jobs than forecast in April, while the unemployment rate inched up as expected, according to official data released on Friday.

Non-farm payrolls (NFP) rose 211,000 in April, compared to the rise of 79,000 a month earlier that was revised from the initial increase of 98,000. The data beat the consensus estimate for the creation of 185,000 jobs.

The jobless rate also unexpectedly dropped to 4.4%, from the prior 4.5%. Analysts had expected it to rise to 4.6%. That was its lowest level since May 2007

Average hourly earnings rose month-on-month by 0.3%, compared to the prior increase of 0.1%, which was revised from a 0.2% advance. The reading was in line with consensus.

The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation.

Additionally, the private sector created more of the new job contracts than expected in April with a total of 194,000, compared to consensus expectations for 185,000. March’s number was revised down to 77,000 private nonfarm payrolls, from the prior reading of 89,000.

Government payrolls increased by 17,000 last month, compared to the creation of 2,000 public jobs created in March, revised from an initial gain of 9,000 positions.

The participation rate remained slipped to 62.9% in April, from the previous reading of 63.0%.

The U6 unemployment rate, that includes those workers who are working part-time for purely economic reasons, decreased to 8.6% last month from March’s reading of 8.9%.

Furthermore, the average weekly hours increased as expected to 34.4 in April from the prior month’s reading of 34.3.

After the release, the U.S. Dollar Index traded at 98.57, compared to 98.73 earlier. EUR/USD traded at 1.0989, from 1.0962 before the publication, USD/JPY traded at 112.38, from 112.46 earlier, and GBP/USD was at 1.2953, compared to 1.2938 previously.

U.S. futures pointed to a flat open on Wall Street. The blue-chip Dow futures slipped 0.01%, S&P 500 futures advanced 0.10% while the Nasdaq 100 futures edged forward 0.09%.

Elsewhere, in the commodities market, gold futures traded at $1,234.37 a troy ounce, compared to $1,233.39 ahead of the data, while crude oil traded at $45.38 a barrel from $44.97 earlier.

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