BoA’s overall take on the NFP report is a positive one, and they also point out the solid income growth
Apr payrolls came in at 177k, slightly higher than our above-consensus (138k) forecast of 165k. Despite modest downward revisions (-58k) to Feb and Mar, this is a healthy number. The u-rate remained at 4.2% despite an uptick in the LFPR. Hours were revised up a tenth for Mar and stayed there in Apr. This should support 1Q income growth. The Apr jobs report was solid all around. There are no substantial signs yet of a policy (DOGE/tariffs/ immigration) drag on payrolls, but we’ll be keeping an eye on this.
S&P 500 futures rose 0.7% after nonfarm payrolls came in at 139,000 for May, surpassing economists’ expectations of 126,000
Nonfarm payrolls rose 139,000 in May, below 147,000 in April (revised downwards from 177,000) but above 126,000 estimate.
Unemployment rate was unchanged at 4.2%, in line with estimates.
Average hourly earnings rose 0.4% on the month against expectations to rise at 0.3% as in April.
Labor force participation rate dropped 0.2% to 62.4%.
S&P 500 and Nasdaq 100 futures rose 0.7% following the report.
April nonfarm payroll numbers were also revised downwards by 65,000 to 120,000.
Education and Health Services, Leisure and Hospitality were the major contributors to the job gains.
The report eases recent concerns sparked by other economic indicators, such as rising jobless claims and weakening services activity, that had suggested the U.S. economy was heading toward a slowdown.
