Non-Farm Payrolls Increas 215K, Unemployment Rate At 5%

The labor market is growing with nonfarm payrolls up a higher-than-expected 215,000 in March and with the labor participation rate rising 1 tenth to 63.0 percent. The gain in participation, reflecting new job seekers coming into the market, is pulling the unemployment rate higher, up 1 tenth in March to 5.0 percent in what is the result of strength, not weakness, for employment. And there's pressure in average hourly earnings, at least on the monthly level with a higher-than-expected gain of 0.3 percent that, however, did not lift the year-on-year which is sagging at plus 2.3 percent.

Payrolls by industries show further big gains for trade & transportation, construction and also retail. Professional & business services are also strong suggesting that employers have plenty of jobs to fill. Manufacturing, however, is once again down.

Not showing greater strength is the workweek, steady at 34.4 hours, nor manufacturing hours, with a decline in the latter pointing to another month of disappointment for the factory sector.

Revisions are not a factor in today's report, one that, despite weak spots, points to accelerating economic growth. Yet the report is probably not strong enough to reawaken talk of a rate hike this month, at least not following Janet Yellen's dovish speech on Tuesday, though the June FOMC may seem like a rising possibility.

Recent History Of This Indicator:
Nonfarm payrolls are expected to extend their very solid trend with a 210,000 rise in March that would follow an even stronger 242,000 rise in February. The unemployment rate is expected to hold at 4.9 percent while average hourly earnings are expected to rise a steady 0.2 percent. A 0.3 percent rise for earnings, not to mention stronger-than-expected payroll growth or a tick lower in the unemployment rate, could raise talk of an April FOMC rate hike.