Let’s dig into the non-farm payrolls report and the numbers we’ve got to this point.
What’s anticipated:
- Consensus estimate +60K (vary -25K to +125K)
- January -92K
- Personal payrolls consensus estimate +70K
- Unemployment price consensus estimate: 4.4% vs 4.4% prior
- Participation price prior 62.0%
- Prior underemployment U6 prior 7.9%
- Avg hourly earnings y/y exp +3.7% y/y vs +3.8% prior
- Avg hourly earnings m/m exp +0.3% vs +0.4% prior
- Avg weekly hours exp 34.3 vs 34.3 prior
February jobs to this point:
- ADP employment report 62K vs 66K prior
- ISM providers employment not but launched
- ISM manufacturing employment 48.7 vs 49.0 prior
- Challenger Job Cuts 60,620 vs 78,327 prior
- Philly employment +0.8 vs -1.3 prior
- Empire employment +5.8 vs +4.0 prior
- Preliminary jobless claims survey week 205K vs 213K prior
Traditionally, the headline print is seasonally smooth in market with 56% of stories under estimates and 44% beating, excluding 2022/21. On the flipside, 41% of earlier unemployment prints have been decrease than anticipated whereas 33% have been increased, with the rest matching the consensus.
Non-farm payrolls month-to-month
By way of buying and selling, this can be a unusual one as a result of it is being launched on Good Friday. Inventory and bond markets are each closed and — whereas FX will likely be open — liquidity will likely be diminished (see right here for what’s open and closed).
The final pondering in markets is that this report does not matter that a lot as a result of the battle is dominating and even one other miss would not be so unhealthy as a result of the previous two ADP stories have been strong. I can get behind that line of pondering however solely to a sure extent.
Apparently, non-farm payrolls in 1994 and 1996 had been each launched on Good Friday and noticed big beats with the market closed and that led to massive bond market selloffs the next Monday.
