3 month average: 288K. 12 month average: 275K. Wages lag.

The US jobs report was strong despite harsh weather on the eastern portion of the US. The data is strong enough to get the Fed to drop "patient" from their statememt and paves the way for a tightening as early as June 2015 (I think so. We are only talking about 25 basis points after all).

Highlights:

  • Nonfarm payroll rose by 295K vs. expectations of 235K.
  • The prior 2 months revisions showed a modest decline of -18 K
  • Private payrolls increased by 288K
  • The unemployment rate fell to 5.5%. This is the lowest level since May 2008.
  • The underemployment rate fell to 11%. This is the lowest level since August 2008.
  • The participation rate remains near the low level at 62.8%. Not so great.
  • Average hourly earnings are disappointment at +0.1% MoM and 2% YoY

Below is an infograph of the major trends of the US employment situation.