Consensus thought today’s employment situation report would be good. It looked for +210K in non-farm jobs and a 6.6% unemployment rate.
Four big backstops behind pre-market bullishness were:
(1) Better U.S. manufacturing PMIs in pretty much every region.
(2) Better weather.
(3) Better weekly unemployment claims in April versus March.
(4) A nice +220K ADP jobs number on Wednesday.
What did we get? A blowout! The U.S. economy delivered +288K jobs and a 6.3% unemployment rate in April 2014.
That’s the lowest unemployment rate since that fateful September 2008 time when the financial crisis went front and center.
Employment gains were revised up by +36K. After this report’s data, +203K new jobs were created in March, up from a preliminary +192K. February's gain was revised to +222K from +197K.
In the four months of 2014 to date, the economy has gained an average of +214K jobs a month, well ahead of the 2013 pace of +194K.
My RTI: Does a Jobs Blowout Change the Fed Taper Timeline?
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