NFP: The trend in hiring is slowing - Wells Fargo

The US employment report showed the economy created 196.000 jobs in March. Analysts at Wells Fargo point out that payroll growth picked up, but the trend in hiring is slowing.

Key Quotes: 

“After extreme readings to the upside and downside of estimates in January (+312K) and February (+33K), nonfarm payrolls posted a more run-of-themill gain to end the first quarter. Employers added 196K new jobs in March. That was slightly stronger than expected, but the overall trend in hiring is easing from the robust 200K+ pace of last year. The three-month average for payroll growth has slipped to 180K in Q1 from 233K in Q4-2018.”

“The global slowdown and trade headwinds are becoming more evident in the payroll data, with manufacturers shedding 6K jobs in March—the first cut in a little over a year and a half.”

“Average hourly earnings growth was a dud in March, rising just 0.1% (0.14% before rounding). That sent the year-ago rate down to 3.2%. Average hourly earnings were up only 2.8% on a year-ago basis last March, so the trend is still upward.”

“With job growth moderating, the unemployment rate moving sideways and wage growth showing no further signs of acceleration this month, this report gives no reason for the FOMC to alter its “patient” stance on making further policy adjustments any time soon.”