The United States created 916,000 jobs and the unemployment rate tumbled last month as businesses – expecting a historic economic recovery – ramped up hiring. January and February were revised up by a combined 156,000.
Gains were broad-based, with the public sector contributing 136,000 jobs while 780,000 were added in the private sector. Importantly, the strongest additions came in the leisure and hospitality industry, which took the biggest hit due to the government-imposed shutdowns. 280,000 roles were generated, leaving the sector 3.1 million below pre-pandemic levels.
The headline unemployment rate fell to 6.0% from the previous month’s 6.2% reading, and a broader measure that includes discouraged workers and those holding part-time jobs for economic reasons – the U-6 – dropped to 10.7% from 11.1% in February.
Healing in the labour market occurred as an accelerating vaccination campaign encouraged regional authorities to lift social distancing restrictions – and as President Joe Biden’s $1.9 trillion spending bill helped drive a historic improvement in business sentiment levels. A recent Institute for Supply Management survey showed US manufacturing activity leaping to the highest in level in more than 37 years last month.
Equity bourses are closed, leaving bond desks and holiday-thinned foreign exchange markets to express price action. 10-year US Treasury yields popped back to 1.69%, lifting the trade-weighted dollar slightly – but the reaction was modest, suggesting that the upward skew evident in expectations ahead of the print helped calm markets. On average, economists surveyed by Dow Jones had been expecting a 675,000-position jump, but a number of the biggest money-center banks had set estimates considerably higher – closer to the 1 million mark.
Taken in sum, today’s job data might help put the good back into Good Friday (which had become something of an obsolete misnomer in modern English). Have a great weekend!
Chief Market Strategist
“Cambridge Global Payments” is a trade name, which in this document refers specifically to one or more of these legal entities: Cambridge Mercantile Corp., Cambridge Mercantile Corp. (U.S.A.), Cambridge Mercantile Corp. (Nevada), Cambridge Mercantile (Australia) Pty. Ltd.
Cambridge Global Payments (“Cambridge”) provides this document as general market information subject to: Cambridge’s copyright, and all contract terms in place, if any, between you and the Cambridge entity you have contracted with. This document is based on sources Cambridge considers reliable, but without independent verification. Cambridge makes no guarantee of its accuracy or completeness. Cambridge is not responsible for any errors in or related to the document, or for damages arising out of any person’s reliance upon this information. All charts or graphs are from publicly available sources or proprietary data. The information in this document is subject to sudden change without notice.
Cambridge may sell to you and/or buy from you foreign exchange instruments (including spot and/or derivative transactions; both kinds are here called “FXI”s) covered by Cambridge on a principal basis.
This document is NOT: 1) Advice of any kind, or 2) Approved or reviewed by any regulatory authority, or 3) An offer to sell or a solicitation of an offer to buy any FXIs, or to participate in any trading strategy.
Before acting on this document, you must consider the appropriateness of the information, based on your objectives, needs and finances. For advice, you must contact someone independent of Cambridge.
Certain FXIs mentioned in this document may be ineligible for sale in some locations, and/or unsuitable for you. Contact your Cambridge representative for further information regarding product availability/suitability before you enter into any FXI contract.
FXIs are volatile and may cause losses. Past performance of a FXI product cannot be relied on to determine future performance.
This document is intended only for persons in Canada, the US, and Australia. This document is not intended for persons in the UK or elsewhere in the EEA. In Australia, this publication has been distributed by Cambridge Mercantile (Australia) Pty. Ltd. (ABN 85 126 642 448, AFSL 351278); for the general information of its customers (as defined in the Corporations Act 2001). This entity makes no representations that the products or services mentioned in this document are available to persons in Australia or are necessarily suitable for any particular person or appropriate in accordance with local law.
Fees may be earned by Cambridge (and its agents) in respect of any business transacted with Cambridge.
The document is intended to be distributed in its entirety. Unless governing law permits otherwise, you must contact the applicable Cambridge if you wish to use Cambridge services to enter a transaction involving any instrument mentioned in this document.
© Copyright 2018, Cambridge Mercantile Corp., ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of Cambridge Mercantile Corp. See www.cambridgefx.com for contact details.