COM - Employment April 2024: Trigger For Rally In Oversold Market

2024-05-03 11:30:37 ET

Summary

• Nonfarm Payrolls in April grew by 175 thousand, below expectations of 238 thousand.
• The labor market is slightly weaker than expected, with lower growth rates in Average Hourly Earnings and Average Hours Worked.  The unemployment rate also ticked up.
• Due to previously oversold technical conditions, markets rallied strongly on the moderately softer-than-expected data.
• The U.S. economy may face a "no landing" scenario, with the potential for a tightening of financial conditions in the second half of 2024.

The Employment Situation Report (ESR), corresponding to labor market activity during the month of April 2024, was published by the BLS on Friday, May 3, 2024, at 8:30 AM EST. This report makes available an extraordinary amount of important labor market data derived from two separate surveys: The Establishment Survey and the Household Survey.

In this article, we will walk readers through the most important employment statistics derived from both surveys. However, we will be providing a deep breakdown of the Establishment Survey. We will also discuss the likely implication of the report for bond and equity markets....

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