US: Labour market fears dispelled – RBS

Analysts at the Royal Bank of Scotland point out that the US payrolls has posted an impressive 196k rise in March after February’s paltry 33k increase, dispelling fears about the US labour market.

Key Quotes

“Jobs strength was most evident in services last month. In contrast, manufacturing employment fell for the first time since July 2017. The unemployment rate was unchanged at 3.8% last month, close to 50yr lows. However, wage growth slipped to 3.2%yoy in March versus 3.4%yoy in February, below market expectations Sluggish pay pressures amid a tight labour market look set to reinforce the Fed’s current patient stance on monetary policy at least near-term.”