This past week marked disappointment in the labor market as job gains see a startling plummet. The major economic data accompanied by Friday's labor market report fell well below analyst expectations. As a result, mortgage rates ended the week lower. Job Gains See a Startling Plummet The monthly Employment report was highly anticipated. Without a doubt, the Employment report saw an enormous miss, but the reason why is far less clear. In April, job gains saw a startling plummet when the economy gained just 266,000 jobs. Thus, job gains notched far below the consensus forecast of 975,000. To make matters worse, the unemployment rate increased to 6.1%. Therefore, the unemployment rate rose above the consensus for a total decline to 5.8%. Now, investors debate the cause of the shortfall. Whereas some believe it is due to unexpectedly slow job creation by companies, others feel that there is a lack of available workers to fill positions. While job gains saw a startling plummet, the average hourly earnings showed positivity. Analysts consider average hourly earnings to be an indicator of wage growth. In April 2021, earnings rose 0.7% from March. Due to this outcome, average hourly earnings slightly increased above the consensus [...]
Looking at the recent data, new home sales skyrocket though mortgage markets barely changed. Mixed economic data caused little reaction.
This past week, the United States realized impressive market growth despite the decline in mortgage rates.
This week’s story focused on how the service sector growth fuels the expanding economy, though mortgage weeks declined slightly.
In this past week’s labor market reporting, the economy realized impressive employment gains and manufacturing sector strength. As a result, both exceeded expectations. In spite of this positivity, mortgage rates ended the week with little change. Impressive Employment Gains Analysts finally learned the latest on Employment in the report released Friday, April 2nd, 2021. To the surprise of many, the data displayed impressive employment gains. Overall, the United States economy gained 916,000 jobs. This result is far above the consensus forecast of 625,000. In addition, the prior month showed revised results to the addition of 156,000 jobs. In particular, the hospitality and construction sectors exhibited strength. This is fantastic news given that both the hospitality and construction industries suffered at the onset of the coronavirus pandemic. Impressive Employment Gains Lead to Unemployment Rate Decline Because of the impressive employment gains, the unemployment rate saw a decline. Thus, the unemployment rate dropped from 6.2% to 6.0%. This result matched expectations. On the other hand, the economy expressed a decline in average hourly earnings. Generally, economists consider average hourly earnings to be an indicator of wage growth. The average hourly earnings fell slightly from February, below the consensus for a modest increase. [...]
Facilitated by powerful job gains, mortgage rates have been on an upward path this year, potentially influencing rising inflation. Stronger-than-expected economic data caused the trend to continue this week.