DIA - Weak Labor Market? Not Quite Yet
2024-05-03 18:31:11 ET
Summary
- April saw a larger than expected drop in job creation, but the 12-month trend remains relatively flat.
- Early indicators suggest that the labor market may be settling down, with a drop in job openings and declines in separations and hires.
- While there are some weaknesses in the labor market, the labor market may not be weak enough to justify a rate cut.
Earlier today, the Bureau of Labor Statistics released the April nonfarm payroll report, which measures the health of the labor market. The Employment Situation Summary showed a larger than expected drop in job creation with only 175,000 jobs created in the month of April, well below recent monthly gains and on par with pre-pandemic levels. While the markets rallied on the prospects of the labor market fueling interest rate cuts, investors need to be mindful that not all trends in this report indicate total weakness....
Weak Labor Market? Not Quite Yet