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  • Employment Report

    -- MAY PAYROLLS RISE 175,000, JOBLESS RATE RISES TO 7.6%

    -- JOBLESS RATE AT 7.555% VS 7.510% PRIOR MONTH << due to small gain to participation

    -- REVISIONS CUT COMBINED 12,000 JOBS FOR APRIL, MARCH

    -- PARTICIPATION RATE IN U.S. ROSE IN MAY TO 63.4% FROM 63.3%

    -- MAY FACTORY JOBS DROP 8,000, CONSTRUCTION RISES 7,000

    -- MAY AVERAGE HOURLY EARNINGS FOR ALL U.S. WORKERS UNCHANGED

    -- Avg workweek flat at 34.5, but with uptick

    -- HOUSEHOLD MEASURE OF U.S. EMPLOYMENT INCREASES BY 319,000

    -- PRIVATE PAYROLLS RISE BY 178,000, GOVERNMENT JOBS FALL 3,000 

    The job numbers are sort of a non-event, but certainly better than the markets had been fearing in the days leading up.  The uptick in unemployment rate is attributable to a surge in the labor force (+420k).  Other than that, no wage gains or increase in the work week.  The report does not really do anything for the prospects of tapering QE sooner than expected.  Post number flows in mortgages have been very light, with a little under $500m in supply from mortgage lenders.  Despite that, mortgages have traded in a fairly broad range today, which has been the trend lately.  Fannie 3s, for example, opened above yesterday’s close at 100-29, traded through 101 after the number and are now down to 100-09.  We’ve already seen nearly a point in price dispersion.

    Jun 7 2013