THE BASIS POINT

April Job Gains down Reflecting Weak GDP Growth.

BLS Employment Situation Report (April 2016)

– Nonfarm Payrolls month/month 160,000. Previous was lowered to 208,000
– Unemployment Rate 5.0%. Previous was 5.0%
– Private Payrolls month/month  171,000. Previous was 184,000
– Participation Rate    62.8%. Previous was 63.0%
– Average Hourly Earnings month/month +0.3%. Previous was +0.2%
– Average Workweek – All Employees  34.5 hours. Previous was 34.5 hours.

This is the weakest gain in 7 months and reflects the anemic GDP growth.  The rosy reports of the past couple of years have showed moderate job gains but mostly in low paying jobs.  Growth in low paying jobs does not stimulate the economy and now the jobs market is reflecting this fact.