US: Jobs Market Not So Strong - ING
James Knightley, Senior Economist at ING, suggests that the latest
Federal Reserve’s Labour Market Conditions index posted a third
consecutive drop, hinting that the jobs market may not be as strong as
Friday’s payrolls report had suggested.
“Last week’s US labour report offered more encouragement on the strength of the labour market with the economy creating 215,000 jobs in March and wages growth ticking higher. However, latest Federal Reserve index on labour market conditions deteriorated for the third straight month. Rather than rise 1.5% as expected, it fell 2.1% after a 2.5% drop in February and a 1.9% fall in January.
The last time it had fallen before this was March 2015 and the last time we saw three consecutive falls was in the three months to June 2009. The main factors driving this were a drop in company hiring plans and a perception amongst households that jobs were becoming “more hard to get”.
Nonetheless, this softening trend may be enough to lead to some caution at the Federal Reserve after the more general upbeat tone of late.”
(Market News Provided by FXstreet)