On Friday, the official employment report will be released in the US, according to analysts from Danske Bank, non-farm payrolls increased 220,000 in March and the unemployment rate remained unchanged at 4.9%.
Key Quotes:
“We estimate non-farm payrolls increased 220,000 in March, slightly above the current consensus of 210,000. Job growth is mainly driven by private service payrolls, which we estimate increased 180,000 in March down from a high of 245,000 in February.”
“We estimate the unemployment rate was unchanged at 4.9 % in March. We estimate that manufacturing payrolls was unchanged in March.”
“Wage growth continues to be subdued despite the tighter labour market. Average hourly earnings increased 2.2% y/y in February as monthly wage growth slipped to 0% m/m. We expect wage growth to trend slightly higher over the coming months but, if continued, the increase in the participation rate seen over the past five months should ease the upward pressure on wages.”
“In the otherwise solid February job report, there was one note of caution. The average workweek slid from 34.6 hours to 34.4. This implied that although more people became employed the aggregate amount of hours worked declined. We would be glad to see a rebound in the average workweek in March.”
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