US NFP: Robust jobs gain is expected - Westpac

The research team at Westpac, expects another robust jobs gain from the US NFP, albeit back around 180k.

Key Quotes

“The labour market started 2017 on a particularly strong note, with a 235k gain in nonfarm payrolls in February following January's 238k rise (previously 227k). That is a material step up in the pace of job creation versus 2016 – a 187k average.”

“The household survey also points to a strong labour market: the unemployment rate edging back down to 4.7%; and the employment to population ratio trended higher to 60%.”

“Wages remain the one component that are not showing outright strength. However, solid gains continue.”

“Come March, another robust jobs gain is expected, albeit back around 180k. With full employment reached, jobs growth should slow through 2017 to a pace more consistent with maintaining an unchanged unemployment rate – circa 125k.”