Job Gains See a Startling Plummet Lowering Mortgage Rates
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 [...]
