US Nonfarm Payroll and Employment Levels

Macroeconomics and Politics
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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.

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https://x.com/neilksethi/status/1918387515746353306

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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.

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https://www.bls.gov/news.release/empsit.nr0.htm

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