Job Market Slows, But Remains Healthy

- The Change in Non-farm Payrolls for April was 138K versus estimates of 200K and 200K in March.
- The Unemployment Rate for April was 4.7% versus estimates of 4.7% and 4.7% in March.
- The Change in Manufacturing Payrolls for April was 19K versus estimates of 0K and 1K in March.
- Average Hourly Earnings for April rose .5% versus estimates of a .3% increase and a .3% gain in March.

BOTTOM LINE: Employers in the US added fewer jobs than expected last month, while wages jumped because factories filled more high-paying positions as the unemployment rate held steady, Bloomberg said. Averages wages rose 3.8% year-over-year, the largest gain since August 2001. In my opinion, this is just the type of report we needed, not too hot or cold. I continue to believe the labor market is in the process of slowing, but will remain healthy without creating substantial unit labor cost increases, which account for two-thirds of inflation.