Market Commentary 5/5/17

The April jobs report confirmed continued improvement in the labor force with 211,000 new jobs created in April, above the 180,000 expected. That was well above the anemic 79,000 jobs created in March, which had been revised lower from the 98,000 originally reported.
The report’s key data findings were as follows:

* The total unemployment or the U-6 number, fell to 8.6% from 8.9%, which is the lowest rate of unemployment since November 2011.
* The unemployment rate fell to 4.4%, the lowest level in 10 years.
* Average hourly earnings rose 2.5% year-over-year as of April, compared to the recent high of 2.9% in December.
* The Labor Force Participation Rate (LFPR) edged lower to 62.9%, still at decade lows.

Overall, the report was positive given that this is the 93rd consecutive month of the economic expansion. However, wage growth rates have been anemic even as more jobs are being created and this is one reason why bonds did not sell off in response to the report. Economists continue to be perplexed by the low rate of wage growth and the general lack of inflation considering the massive amount of liquidity that has flooded the global marketplace over the course of this economic recovery.