Last Friday, May 7, the NFP data left markets, economists, and the general population in awe. The figures showed only 266,000 jobs created compared to the almost 1 million jobs forecast, and 770,000 jobs created in March.
Federal Reserve Chairman Jerome Powell stressed that “the economy is a long way from our targets, and it will likely take some time to make substantial additional progress,” at a press conference last week. And the data have reflected this with only a 1% rise from the previous month.
The easing of some of the lockdown´s restrictions due to the coronavirus is slowly helping the economy to recover, but employers are being cautious about hiring. Many sectors have begun to recover and others – which benefited from the circumstances of the pandemic – are retrenching as a result. Transport and warehousing employers cut jobs. Temporary help employment fell by 111,000, manufacturing employment by 18,000 and retail jobs by 15,000.
According to the Department of Labour, the sector that benefited the most from job creation in April was – thanks to the reductions in the lockdown´s measures -the hotel and catering industry, with the creation of 331,000 jobs.
Today, Monday, a new trading week begins in world markets with traders already having taken note of the unexpected NFP while keeping an eye on the Australian retail sales m/m.