April employment came in better than expected, but not as solid as it appears.

177K jobs were gained for the month (vs. +138K estimate)

The 12-month average is now 152K. However, February job gains were revised lower by 15K, and March was revised lower by 43K.

If we subtract the -58K in net revisions, we get a total payroll change of +119K for April, some 20% below the 12-month average.

Still much better than the worst-case scenario, but not quite as good as the headline number would suggest.

Wages increased +0.2% for the month (street was expecting +0.3%)

Wages are up +3.8% over the last 12 months. Well above the level of inflation during that time frame.

Unemployment rate stayed the same at 4.2% (in line with what the street was expecting.

Good, not great. I’d probably give it a B- since sentiment is so awful. As long as employment & wages can hold steady, we can avoid a recession.