US Nonfarm Payrolls: Labour market remains tight – UOB

Senior Economist at UOB Group Alvin Liew reviews the latest NFP figures released last Friday.

Key Takeaways

“The Mar US employment report showed a gain of 431,000 (above 400,00 for the 11th month in a row) jobs and the unemployment rate easing to 3.8%, nearly returning to pre-pandemic level of 3.5%.”

“Wage growth picked up pace at 0.4% m/m, 5.6% y/y in Mar in the face of growing demand and persistent worker shortages.”

“US employment gains in 2022 to date continues to fuel labor market optimism, while the resumption of stronger wage increases will still put the threat of wage-price spiral in focus amidst on-going inflation worries due to the Russia-Ukraine crisis.”