Job Market Still Healthy

- The Unemployment Rate for April came in at 5.2% versus estimates of 5.2% and 5.2% in March.
- Average Hourly Earnings for April rose .3% versus estimates of a .2% increase and a .3% gain in March.
- The Change in Non-farm Payrolls for April rose to 274K versus estimates of 174K and an upwardly revised 146K in March.
- The Change in Manufacturing Payrolls for April rose to -6K versus estimates of -5K and -7K in March.
- Average Weekly Hours for April rose to 33.9 versus estimates of 33.7 and 33.7 in March.

Bottom Line: Today’s strong jobs report was further bolstered by an upward revision of 93,000 more jobs created in February and March than previously thought. Stand-out sectors included an increase in retail employment of 24,000 in April after a decline of 2,100 in March. As well, construction jobs rose by 47,000 after an increase of 29,000 the prior month. This bodes well for an acceleration of new home starts. Moreover, I continue to believe consumer spending will remain healthy throughout the year as interest rates stay low, inflation decelerates, job prospects/incomes improve modestly, sentiment rises and gas prices fall.