The April employment report was superlative and continued to demonstrate a very strong labor market. The economy created a record high (since 1976) +106.5k jobs, easily surpassing expectations of only +10k to +20k. It was the best year-to-date total through April on record. The y/y growth rate reached +2.3%, tying for the highest in over eleven years. The unemployment rate dropped from 5.8% to 5.7%, just above the record low of 5.6% set in December. The employment to population rate rose +0.2pp to 62.1%, the highest in 10 years. The participation rate also rose +0.2pp to 65.9%, coming off the recent bottom of 65.3% in October. Gains were widespread both by industry and by geography. Hours worked grew by +0.4% m/m after a steep +1% increase last month, and 69% of the jobs were full time. Wages rose to +2.5% y/y, up from +1.7% just six months ago. The report was an encouraging sign, countering slow Q1 GDP growth and trade concerns.
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