Senior Economist at UOB Group Alvin Liew reviews the latest Nonfarm Payrolls figures for the month of April (May 6).

Key Takeaways

“The Apr US employment report showed a gain of 428,000 jobs (above 400,000 for the 12th month in a row) while the unemployment rate stayed at 3.6%, unchanged from Mar and a hair’s length from pre-pandemic level of 3.5%.”

“Wage growth continued to rise amidst growing demand and persistent worker shortages but markets were somewhat relieved that the rise was at a slower pace of 0.3% m/m, 5.5% y/y in Apr (easing from 0.5% m/m, 5.6% y/y in Mar) despite hiring challenges.”

“US employment gains in 2022 to date continues to fuel labor market optimism, while persistent wage increases will still put the threat of wage-price spiral in focus amidst on-going inflation worries due to commodity price surges and supply chain disruptions.”