Coal miners look on as U.S. President Donald Trump addresses a Make America Great Again rally at the Civic Center in Charleston, West Virginia, U.S., August 21, 2018. "It is inflationary in the sense that wages did go up, but they didn't go up as much as we had expected".
"Goldilocks is the best description of this", Slok said. The pickup in growth pushed the one-year trend for private payrolls up to a robust 2.0% pace, a three-month high.
Unemployment also fell to its lowest since the recession 10 years ago with a rate of 3.6 per cent, which was 0.2 per cent less than in March. Prior to April's report, the consistent unemployment rate suggested that workers are jumping back into the workforce to fill open jobs, rather than the workers who are now collecting unemployment welfare, according to WSJ.
The jobless rate for Hispanics fell to the lowest level on record, as did a broader measure of unemployment that includes discouraged workers.
Friday's data follow a Federal Open Market Committee statement Wednesday saying "the labor market remains strong". A majority of Americans, 56%, rate their current financial situation as "excellent" (12%) or "good" (44%), while 29% rate it as "only fair" and 15% as "poor.' This overall positive rating has increased 10 percentage points since 2015 and is now the highest since 2002 though it is statistically unchanged since past year".
Similar to ADP, the BLS report showed hiring strength led in the business and professional services jobs, as well as in construction services and health care.
Construction payrolls climbed by 33,000, the most since January, as manufacturing employment rose by 4,000.
If you were expecting a weak jobs report, this was the wrong first Friday of the month for you. Average hourly pay rose 3.2 per cent from 12 months earlier, a healthy increase after years of stagnation in wages. That would lift the annual increase in wages to 3.3 percent from 3.2 percent in March.
While the historically tight labour market has pushed companies to raise pay, inflation appears largely subdued, as the fatter pay cheques don't show any sign of fuelling faster price gains. Economists were watching government employment closely since the U.S. Census is beginning to ramp up hiring ahead of the 2020 Census.