Excellent Employment

Friday’s labor report was strong. The unemployment rate fell to 4.4%, its lowest level since 5/01. The broadest measure of unemployment declined to 8.6%, its best showing since 12/07, and monthly employment gains this year are averaging 185,000/month, hearty! The only disappointment, Y-o-Y wage growth remains weak at 2.5%. The tightening labor market essentially insures a June rate hike and argues strongly against personal, but not corporate, income tax cuts.